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Carla Vista Inc. has a bond issue maturing in seven years that is paying a coupon rate of 7.5% semi annual payments. Management Wants to

Carla Vista Inc. has a bond issue maturing in seven years that is paying a coupon rate of 7.5% semi annual payments. Management Wants to retire a portion of the issue by buying the securities in an open market. If they can refinance at 6% how much will Carlo Vista pay to buy back of its current outstanding bonds?

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