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The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest
The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? (Hint: the bonds have 17 years to maturity now).
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