Question: A $2,000 par value bond with 4% annual coupons is purchased at a discount twelve years prior to the maturity date. The proceeds of the

A $2,000 par value bond with 4% annual coupons is purchased at a discount twelve years prior to the maturity date. The proceeds of the coupons are invested in a savings account with a 5% effective annual rate of interest. The effective yield on the twelve- year investment (including the bond and the savings account) is 6%. What is the book value of the bond one year after purchase

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