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DMD Company needs to raise $5,000,000 to expand operations and decided to sell bonds. The bonds will mature in 10 years and will pay bondholders
DMD Company needs to raise $5,000,000 to expand operations and decided to sell bonds. The bonds will mature in 10 years and will pay bondholders interest payments twice a year. The contract rate is 7.0%.
If the market rate is 6.0% at the time of issue, what market price would the company expect to get for these bonds?
Please round your answer to the nearest whole dollar.
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