Question: APPENDIX A APPENDIX B Your broker offers to sell for $1,080 a AAA-rated bond with a coupon rate of 5 percent and a maturity of

Your broker offers to sell for $1,080 a AAA-rated bond with a coupon rate of 5 percent and a maturity of seven years. Given that the interest rate on comparable debt is 4 percent, calculate the bond's price. Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Is your broker fairly pricing the bond? -Select-, so the bond -Select- be purchased.

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