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Media Blas Incorporated Issued bonds 10 years ago at $1,000 per bond. These bonds had a 30 -year life when issued and the annual interest

image text in transcribed Media Blas Incorporated Issued bonds 10 years ago at $1,000 per bond. These bonds had a 30 -year life when issued and the annual interest payment was then 13 percent. This return was in Iine with the required returns by bondholders at that point in time as described below: Assume that 10 years later, due to good publicity, the risk premlum is now 2 percent and is approprlately reflected in the required return (or yleld to maturlty) of the bonds. The bonds have 20 years remaining untll maturity. Compute the new price of the bond. Use and Append1XD for an approximate answer but calculate your final answer using the formula and financial calculator methods. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual

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