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A company is issuing a 3-year maturity bond that is expected to pay $40 every...

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Accounting

A company is issuing a 3-year maturity bond that is expected to pay $40 every six months and a lump sum of $1000 at the end of three years from now. If bond investors require a 5% annual nominal interest rate (APR), how much is the price of this bond today? Show your Excel formulas in your answer and explain the step-by-step calculation to arrive at the final answer.

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