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1. XYZ Inc. is planning a bond issue that pays no interest but can be converted to $ 1,000 at 7-year maturity from purchase. To

1. XYZ Inc. is planning a bond issue that pays no interest but can be converted to $ 1,000 at 7-year maturity from purchase. To price these bonds in such a way that they can be competitive with others of equal risk, it was determined that they had a yield (YTM) of 9% compounded annually. At what price should XYZ sell the bonds?

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