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The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into $4,000 at maturity 14 years from their purchase.

The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into $4,000

at maturity 14 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 8

percent, compounded annually. At what price should the Kumar Corporation sell these bonds?

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