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I'm no print professional, but I think you're on the right path. I've always understood bleed to be the white margin that would be trimmed off later or left to allow for print misalignment. The only thing that I'd do differently is instead of copying and pasting your finished work onto the 8.5" x 11", I'd simply make sure you have a blank white background and then resize the canvas. It'll save you the hassle of trying to center your finished work on another page. If you're allowed to, you're going to have to share your work after it goes to print.
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