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A firm has an issue of $1,000 par value bond with a 12% stated interest rate outstanding. The issue pays interest annually and has a

A firm has an issue of $1,000 par value bond with a 12% stated interest rate outstanding. The issue pays interest annually and has a 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8%, the firm's bond will sell for _________ today.

Select one:

a. $ 851.50

b. $ 805.20

c. $1,268.20

d. $1,000

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