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You are considering the purchase of a RM1,000 par value bond with an 6.5% coupon rate (with interest paid semi-annually) that matures in 5 years.
You are considering the purchase of a RM1,000 par value bond with an 6.5% coupon rate (with interest paid semi-annually) that matures in 5 years. Assuming that the bond is priced to provide a required return of 8%, determine the bonds current price. (5 marks)
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