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J and J Manufacturing issued a bond with a $ 1 , 0 0 0 par value. The bond has a coupon rate of 7

J and J Manufacturing issued a bond with a $

1, 000

par value. The bond has a coupon rate of

7 %

and makes payments semiannually.

If the bond has

30

years remaining and the annual market interest rate is

9.4 %

what will the bond sell for today?

Illustrate formula with calculations.

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