Find the price one should pay to produce a yield rate

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A bond with a par value of $1000 has annual coupons at the end of each year for 10 years. The initial coupon rate is 7% and each coupon is 3% greater than the preceding coupon. The bond is redeemed for $1200 at the end of 10 years. Find the price one should pay to produce a yield rate of 7%.

Reference no: EM13728218

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