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A firm has an issue of $1,000 par value bonds with a 10 percent annual coupon interest rate outstanding. The issue pays interest annually and
A firm has an issue of $1,000 par value bonds with a 10 percent annual coupon interest rate outstanding. The issue pays interest annually and has 8 years remaining to its maturity date. If bonds of similar risk are currently earning 5 percent annually, calculate the market value that the firm's bond will sell for today.
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