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Firm ABC plans to issue a $ 1 , 0 0 0 par bond. The coupons are paid annually. The first payment is $ 6

Firm ABC plans to issue a $

1, 000

par bond. The coupons are paid annually. The first payment is $

60

and will grow at

3 %

every year forever. The YTM is

8 % .

What is the issue price of the bond?

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