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Suppose a seven-year, $1,000 bond with a 7.9% coupon rate and semiannual coupons is trading...

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Finance

Suppose a seven-year, $1,000 bond with a 7.9% coupon rate and semiannual coupons is trading with a yield to maturity of 6.38%.

  1. f the yield to maturity of the bond rises to 7.04% (APR with semiannual compounding), what price will the bond trade for? round to nearest cent

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