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Sovereign Ltd is planning on raising new debt capital through the issue of 1 0 % p . a . quarterly coupon bonds with a

Sovereign Ltd is planning on raising new debt capital through the issue of 10% p.a. quarterly coupon bonds with a face value of $100. These bonds will mature in six years. If the current market yield is 12% p.a. compounded semi-annually, how much will each of Sovereigns bonds cost?

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