Question: 5. A coupon bond that pays interest annually has a par value of $1,000, matures in 10 years, and has a yield to maturity of

5. A coupon bond that pays interest annually has a par value of $1,000, matures in 10 years, and has a yield to maturity of 8%. Calculate the intrinsic value (price) of the bond today if the coupon rate is 9%.

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