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ABC Corp. wants to issue a fixed coupon bond. The firm has estimated that its cost of debt is 1 3 % . It has

ABC Corp. wants to issue a fixed coupon bond. The firm has estimated that its cost of debt is

13 % .

It has decided to issue

15

year FCB

.

The annual coupon rate is

9.5 %,

paid semi

-

annually. What is the price of ABC Corp's bond?

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