Question: You are considering a 5-year, $1,000 par value bond. Its coupon rate is 10%, and coupon is paid quarterly. If you require an effective annual

You are considering a 5-year, $1,000 par value bond. Its coupon rate is 10%, and coupon is paid quarterly. If you require an effective annual interest rate of 12%, how much should you be willing to pay for the bond?

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