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Your firm would like to raise R580 000 by issuing bonds with the following features: 13% 7 year bond with a similar risk profile to

Your firm would like to raise R580 000 by issuing bonds with the following features:

13% 7 year bond with a similar risk profile to companies that have bonds that have yields of 14%. Flotation costs are R120 per bond. Assume par value of R1000.

a.) What is the estimated price of each bond? R

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