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Lactuca Company has bonds that mature in 9 1/2 years with a par value of $1,000. They pay a coupon rate of 12%. If the

Lactuca Company has bonds that mature in 9 1/2 years with a par value of $1,000. They pay a coupon rate of 12%. If the required rate of return on these bonds is 13%, what is the bond's value? Assume semiannual coupon payments. Picture the problem, decide on a solution strategy, solve and analyze.

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