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A company has decided to raise funds by selling bonds $1,000 par value with a coupon interest rate of 5%. The bonds would mature in

A company has decided to raise funds by selling bonds $1,000 par value with a coupon interest rate of 5%. The bonds would mature in 9 years and interest would be paid annually. The required rate of return for similar bonds is expected to be 7%. What is the value of the bond?

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