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Giant Electronics is issuing 20-year bonds that will pay a semiannual coupon on a face value of $1,000. The coupon rate on the bonds is

Giant Electronics is issuing 20-year bonds that will pay a semiannual coupon on a face value of $1,000. The coupon rate on the bonds is 7.8 percent per year. If the market rate on these bonds is 7 percent per year, what is the present value of these bonds? A. $861 B. $923 C. $1,037 D. $1,085

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