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SuperReal Corporation has a level-coupon bond with a 9% coupon rate and is paid annually. The bond has 20 years to maturity and a face

SuperReal Corporation has a level-coupon bond with a 9% coupon rate and

is paid annually. The bond has 20 years to maturity and a face value of $1,000; similar bonds currently yield 7%. By prior agreement, the company will skip the coupon interest payments in years 8, 9, and 10.

These payments will be repaid, without interest, at maturity. Calculate the bond's current value.

Appreciate the step by step explanation in detail.

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