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Your broker offers to sell for $1150 a AAA rated bond with a coupon rate of 6% and a maturity of 8 years. Given that

Your broker offers to sell for $1150 a AAA rated bond with a coupon rate of 6% and a maturity of 8 years. Given that the interest rate on comparable debt is 4%, what should the bond sell for? Type number, no dollar signs, to nearest penny. (HInt: you are solving for PV)

Is the broker fairly pricing the bond?Explain why or why not.

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