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The H & H Computer Company has an outstanding issue of bond with a par value of $ 1 , 0 0 0 , paying

The

H

H

Computer Company has an outstanding issue of bond with a par value of $

1, 000,

paying

12

percent coupon rate

semi

-

annually. The bond was issued

25

years ago and has

5

years to maturity. What is the value of the bond assuming

14

percent

rate of interest? Is it traded on par?

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