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A firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8%, with interest being paid semiannually. The firm

A firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8%, with interest being paid semiannually. The firm has recently faced a corporate fraud scandal, and the required nominal rate on this debt has now risen to 16%. What is the current value of this bond (assuming a face value of $1,000)?

$1,000

$1,273

$553.96

$549.69

$450.76 (i got this answer but unsure)

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