5-20A. (Present value) The Kumar Corporation plans to issue bonds that pay no interest but can be...

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5-20A. (Present value) The Kumar Corporation plans to issue bonds that pay no interest but can be converted into $1,000 at maturity, seven years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 10 percent, compounded annually. At what price should the Kumar Corporation sell these bonds?

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