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Austin Corp. issued a non-callable bond that has 12 years to maturity, an 11% semi-annual coupon, and a $1,000 par value. your required return on

Austin Corp. issued a non-callable bond that has 12 years to maturity, an 11% semi-annual coupon, and a $1,000 par value. your required return on the Austin Corp. Bond is 9%, if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 7year bond with similar risk will be 8.5%. How much should you be willing to pay for the Austin Corp. Bond Today?

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