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You have just noticed in the financial pages of the local newspaper that you can buy a bond ($1000 par). IF the coupon rate is
You have just noticed in the financial pages of the local newspaper that you can buy a bond ($1000 par). IF the coupon rate is 3.9% with annual interest payments, and there are 13 years to maturity, what should the purchase be valued at if your required return on investments of this type is 12.6 percent?
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