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RadicaL CREATIONS Inc. just issued zero - coupon bonds with a par value of $ 1 , 0 0 0 . If the bond has

RadicaL CREATIONS Inc. just issued zero

-

coupon bonds with a par value of $

1, 000 .

If the bond has a maturity of

18

years and a yield to maturity of

12 %,

what is the current price of the bond if it is priced in the conventional manner

(

if coupons are paid semiannually

) ?

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