A $1,000 par value bond, paying $50 semiannually, with an 8 percent yield to maturity and five years remaining to maturity should sell for

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The bond's price can be calculated using the present value of its cash flows, which include the semiannual coupon payments and the par value at maturity. With a semiannual coupon of $50, a yield to maturity of 8% (or 4% per period), and 10 periods (5 years), the bond's price is approximately $1,081.11.

A $1,000 Par Value Bond, Paying $50 Semiannually, with an 8