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Ouch Inc. is issuing bonds to finance the construction of a new plant in Michigan. These bonds are being offered with a face value of
Ouch Inc. is issuing bonds to finance the construction of a new plant in Michigan. These bonds are being offered with a face value of $1000, a coupon rate of 6% (paid annually), and a maturity of 18 years. Find the pure price of each bond if the current market interest rate for similar financial assets is 9% per year (compounded annually).
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