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Sears wants to raise money to avoid bankruptcy. It issues a 500, $1,000 principal bonds. They promise to pay 25% coupon, paid semi-annually for 8

Sears wants to raise money to avoid bankruptcy. It issues a 500, $1,000 principal bonds. They promise to pay 25% coupon, paid semi-annually for 8 years. Because this is a riskier bond, investors demand a very high annual return of 55.3%. What is the fair price of this bond today?

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