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Penny Fabric Co. has a bond with 30 years remaining until it comes due. The face value is $2,000 and the coupon rate is 12%.

Penny Fabric Co. has a bond with 30 years remaining until it comes due. The face value is $2,000 and the coupon rate is 12%. The bond pays the same cashflow as bonds with $1,000 face value. Similar bonds are currently providing an 8% return. What should this bond sell for?

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