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You have a bond with a $1,000 face value. It was issued on March 15, 2002 and matures 25 years later on March 15, 2027.

  1. You have a bond with a $1,000 face value. It was issued on March 15, 2002 and matures 25 years later on March 15, 2027. If you purchased this bond on October 5, 2008, what was the purchase price? The coupon rate is 5.5% payable semi-annually and the market interest rate is 6.0% compounded semi-annually.

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