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To finance one of its major projects, Hawken Ltd. plans to raise $1.5 million by selling bonds. The bonds have 10 years to maturity and
To finance one of its major projects, Hawken Ltd. plans to raise $1.5 million by selling bonds. The bonds have 10 years to maturity and pay coupon interest twice per year. The bond has a face value of $1,000 and a coupon rate of 4.0%. The current market yield on similar bonds is 6.0%. What is the bond price? How many bonds will Hawken Ltd. have to sell?
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