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You own some Nova Scotia Power bonds with a face value of $1000, 7% coupon rate (paid semi-annually) that will mature 14 years from now.

You own some Nova Scotia Power bonds with a face value of $1000, 7% coupon rate (paid semi-annually) that will mature 14 years from now. You need the money so you are thinking of selling these bonds.

If the current market rate of interest is 4%, what do you expect to receive for each bond if you sell them today?

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