Question: You are considering purchasing a bond that has a $ 1 , 0 0 0 par value, 5 % coupon, paid annually, 2 0 years

You are considering purchasing a bond that has a $1,000 par value, 5% coupon, paid annually, 20 years to maturity. Bonds with similar risk and maturity are now yielding 4%. What is the bond's current market value?

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