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Posted on May 19, 2024

Your broker offers to sell for $ 1 , 0 7 5 a AAA - rated bond with a coupon rate of 5 percent and

Your broker offers to sell for $

1, 075

a AAA

-

rated bond with a coupon rate of

5

percent and a maturity of six years. Given that the interest rate on comparable debt is

4

percent, calculate the bond's price. Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

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