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You recently bought a default free bond that makes exactly three payments over the next three years. The current market value of the bond is
You recently bought a default free bond that makes exactly three payments over the next three years. The current market value of the bond is $3,258.27 and the security pays $700 in one year, $1,100 in two years. The security has a yield to maturity of 8%. What is the amount of the payment that you are supposed to receive at the end of three years?
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