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Default Nested IF & AND functions

Trying to calculate bonus's for employees working 1 year, and based on their
pay grade. Yet I'm getting #value, and Excel says I'm using the data type?
help please!

=IF(AND([Years Service]=1, "NE"), IF([Pay Grade]=1,$Z$6,IF([Pay Grade]=2,
$Z$7, IF([Pay Grade]=3, $Z$8, "Invalid pay grade"))))
 
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