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Ryngaert Inc. recently issued bonds (without call provision) that mature in 25 years. They have a par value of $1,000 and an annual coupon of
Ryngaert Inc. recently issued bonds (without call provision) that mature in 25 years. They have a par value of $1,000 and an annual coupon of 5.7%. Interest payment is made semi-annually. If the current market interest rate for bonds is 7.0%, at what price should the bonds sell?
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