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ABC Ltd has issued bonds with a face value of $500,000, carrying an interest rate of 8% per annum and payable semi-annually. The bonds are

ABC Ltd has issued bonds with a face value of $500,000, carrying an interest rate of 8% per annum and payable semi-annually. The bonds are redeemable in 5 years and the company has a marginal tax rate of 30%. Calculate the present value of the bonds if the required rate of return is 9% per annum.

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