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Your client has been offered a 5-year, $1,000 par value bond with a 10% coupon. Interest on this bond is paid quarterly. If your client
Your client has been offered a 5-year, $1,000 par value bond with a 10% coupon. Interest on this bond is paid quarterly. If your client is to earn a nominal rate of return of 12%, compounded quarterly, how much should she pay for the bond?
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