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Anderson Pizza intends to raise money by issuing perpetual bonds. The coupon rate on these bonds will be 7%. The interest is paid annually at
Anderson Pizza intends to raise money by issuing perpetual bonds. The coupon rate on these bonds will be 7%. The interest is paid annually at the one-year rate of 7%. There is a 40% chance that interest rates will increase to 9% next year and a 60% chance that interest rates will fall to 6% next year. What is the current market value of these bonds
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