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Ford Motor Company has issued bonds that mature 17 years from now, and pay 7.13% coupon interest. Each bond has $1000 face value, and half

Ford Motor Company has issued bonds that mature 17 years from now, and pay 7.13% coupon interest. Each bond has $1000 face value, and half the annual coupon is paid each six months. The yield to maturity on these bonds is 11.72%. What is the value of each bond? Explain why these bonds sell at a price that differs from their $1000 face value.

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