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Cheers Inc. has an outstanding issue of $1,000 par value bonds with an 8 percent coupon interest rate. The issue pays interest semi-annually and has

Cheers Inc. has an outstanding issue of $1,000 par value bonds with an 8 percent coupon interest rate. The issue pays interest semi-annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 12 percent, what is the current value of the bond?

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