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A firm has an issue of $ 1 , 0 0 0 par value bonds with a 1 2 percent Coupon rate outstanding. The issue

A firm has an issue of $

1, 000

par value bonds with a

12

percent Coupon rate outstanding. The issue pays interest annually and has

10

years remaining to its maturity date. If bonds of similar risk are currently earning

8

percent, the firm's bond will sell for

________

today.

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