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Twenty years ago, Costco Wholesale Corporation (COST) issued 30-year bonds that had a coupon rate of 12 percent with the interest paid semi-annually. If these

Twenty years ago, Costco Wholesale Corporation (COST) issued 30-year bonds that had a coupon rate of 12 percent with the interest paid semi-annually. If these bonds are now trading with an 8 percent market required yield, at what price are these bonds now selling? The par value of the bonds is $1,000. Why is the price now different from the par value?

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