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ABC Company has outstanding a 6% bond issue with a face value of $10,000 per bond and 5 years to maturity. Interest is payable quarterly.
ABC Company has outstanding a 6% bond issue with a face value of $10,000 per bond and 5 years to maturity. Interest is payable quarterly. It estimates that, in current market conditions, the bonds should provide a (nominal annual) return of 12%. What price per bond should be realized on selling the bond?
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