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Stark Corporation issued bonds at $1,000 per bond. The bonds had a 35 year life with a coupon rate of 8% paid annually. Assume 10
Stark Corporation issued bonds at $1,000 per bond. The bonds had a 35 year life with a coupon rate of 8% paid annually. Assume 10 years later, due to bad publicity, the risk premium for the bonds have caused the risk premium to increase the overall market yields to 13%. The bonds have 25 years remaining until maturity. Compute the new price of the bond. Round to 2 decimal places. O $686.27 O $633.50 O$587.62 $747.35
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