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Your client, Pierre Batistuta has been offered a 10-year, $1,000 par value bond with a 8.8 percent coupon. Interest on this bond is paid semiannually.

Your client, Pierre Batistuta has been offered a 10-year, $1,000 par value bond with a 8.8 percent coupon. Interest on this bond is paid semiannually. If Pierre is to earn a nominal rate of return of 10.8 percent, compounded semiannually, how much should he pay for the bond?

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