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New Business Ventures, Incorporated, has an outstanding perpetual bond with a coupon rate of 1 1 percent that can be called in one year. The
New Business Ventures, Incorporated, has an outstanding perpetual bond with a coupon rate of percent that can be called in one year. The bond makes annual coupon payments and has a par value of $ The call premium is set at $ over par value. There is a percent chance that the interest rate in one year will be percent, and a percent chance that the interest rate will be percent. If the current interest rate is percent, what is the current market price of the bond? Do not round intermediate calculations and round your answer to decimal places, eg
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