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QUESTION
ABC Inc. bonds have a $1,000 face value. The promised annual coupon is $87. The bonds mature in 8 years.
ABC Inc. bonds have a $1,000 face value. The promised annual coupon is $87. The bonds mature in 8 years. There are 8 coupon payments of $87 each starting a year from now, and the last payment 8 years from now is coupon plus face.
The market's required return for these bonds is 6%. What is the price of these bonds?
