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You bought a bond 8 years ago for $1,000. It has a $1,200 face value and a nominal annual bond rate of 10%, paid semiannually
You bought a bond 8 years ago for $1,000. It has a $1,200 face value and a nominal annual bond rate of 10%, paid semiannually (so it pays 5% of the face value every 6 months). You'd like to sell it now and get a nominal annual yield of 18%. How much should you sell the bond for?
(round to the nearest dollar)
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