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Macrohard plans to issue 25-year bonds. The bonds will make semiannual coupon payments at an annual rate of 5.5%. The par value of the bonds

Macrohard plans to issue 25-year bonds. The bonds will make semiannual coupon payments at an annual rate of 5.5%. The par value of the bonds will be $1000. If the investors require a return of 7.9% on similar bonds,

Is the bond trading at discount, premium, or par? Explain.

What will they be willing to pay for Macrohards bonds?

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