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ABC Inc.s bonds have a 10% coupon rate and $1000 face value. Interest is paid semi-annually, and the bonds have a maturity of ten years.

  1. ABC Inc.s bonds have a 10% coupon rate and $1000 face value. Interest is paid semi-annually, and the bonds have a maturity of ten years. If the appropriate discount rate is 8%/year compounded semi-annually on similar bonds, what is the price of ABCs bonds? (1 mark)

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