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Dooley, Inc., has outstanding $100 million (par value) bonds that pay an annual coupon rate of interest of 8.5 percent. Par value of each bond

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Dooley, Inc., has outstanding $100 million (par value) bonds that pay an annual coupon rate of interest of 8.5 percent. Par value of each bond is $1,000. The bonds are scheduled to mature in 16 years. Because of Dooley's increased risk, investors now require a 14 percent rate of return on bonds of similar quality with 16 years remaining until maturity. The bonds are callable at 113 percent of par at the end of 9 years. Use Table II and Table. IV to answer the questions. Round your answers. to the nearest dollar. a. What price would the bonds sell for assuming investors do not expect them to be called? $ b. What price would the bonds sell for assuming investors expect them to be called at the end of 9 years? $

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