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Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value
Twin Oaks Health Center has a bond issue outstanding with a coupon rate of 7 percent and four years remaining until maturity. The par value of the bond is $1,000, and the bond pays interest semiannually. Determine the current value of the bond if present market conditions justify a 12 percent annual required rate of return. (Assume a 6 percent semiannual required rate of return.)
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