A bonds credit rating provides a guide to its price assume, Ask an Expert

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A bond's credit rating provides a guide to its price. Assume Aaa bonds yield 3.3% and Baa bonds yield 4.2%. Assume you want to buy a 6% three-year bond with annual coupons and a face value of $1,000. How much should you pay for the bond if it is rated as Aaa? (round to nearest whole dollar)

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