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(Bond valuationzero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 8 years

(Bond valuationzero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 8 years from their purchase. To price these bonds competitively with other bonds of equalrisk, it is determined that they should yield 7 percent, compounded annually. At what price should the Latham Corporation sell these bonds?

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