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James Co., LTD decided to take a loan that would be used to finance one of its rescue-the-world missions. It will raise the necessary funds

James Co., LTD decided to take a loan that would be used to finance one of its rescue-the-world missions. It will raise the necessary funds by selling 8 percent coupon bonds with $1,000face value. These bonds will have 12 years to maturity and make semiannual payments. The corporation believes it can sell each bond for $870.

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