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A major auto manufacturer has experienced a market re-evaluation lately due to a number of lawsuits. The firm has a bond issue outstanding with 8

A major auto manufacturer has experienced a market re-evaluation lately due to a number of lawsuits. The firm has a bond issue outstanding with 8 years to maturity and a coupon rate of 6.4% (paid semiannually). The required rate on these bonds has now risen to 14%. At what price can these securities be purchased on the market? Assume the par value is $1000.

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