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You have the opportunity to purchase a 1 5 - year, $ 1 , 0 0 0 par value bond that has an annual coupon

You have the opportunity to purchase a

15 -

year,

1, 000

par value bond that has an annual coupon rate of

8 % .

If you require a YTM of

7.5 %,

how much is the bond worth to

you?

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