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You are interested in buying a $1,000 par value bond with 10 years to maturity and a 5 percent coupon rate that is paid semiannually.

You are interested in buying a $1,000 par value bond with 10 years to maturity and a 5 percent coupon rate that is paid semiannually. How much should you be willing to pay for the bond if the investors required rate of return is 7 percent?

please list step by step with what formula to use and what values represent what variables in the formula. Thank you!!

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