You are considering a 25-year 1000 par value bond its


You are considering a 25-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 9.88%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.

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Finance Basics: You are considering a 25-year 1000 par value bond its
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