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You have been informed by your broker that the ABC Company will soon be issuing an investment grade bond. Since you are trying to find

You have been informed by your broker that the ABC Company will soon be issuing an investment grade bond. Since you are trying to find an appropriate investment for your retirement fund, you have decided to consider this offer. The bond will have 20 years to maturity, a 14% coupon, a $1,000 par value, and semiannual interest payments. You feel that your retirement investments should earn at least 10%. What is the maximum price you would pay for this bond?

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