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You are considering purchasing a corporate bond that has an expected rate of return of 10%, 5% coupon paid annually, a 1,000 par value, and
You are considering purchasing a corporate bond that has an expected rate of return of 10%, 5% coupon paid annually, a 1,000 par value, and has 3 years to maturity. Based on your projections, you will be able to sell the bond at the end of year 3 for 1,100. Calculate current market price of the bond.
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