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A corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 5 years from their purchase. To
A corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 5 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 6 percent, compounded annually. At what price should the corporation sell these bonds?
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