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Ideal Corporation issued 20-year, noncallable, 7.5% semi-annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these

Ideal Corporation issued 20-year, noncallable, 7.5% semi-annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity? Are these premium or discount bonds? Why?

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