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Bond Valuationmadsen Motors’S Bonds Have 20 Years Remaining To Maturity Interest Is Paid

Question

BOND VALUATION

Madsen Motors’s bonds have 20 years remaining to maturity. Interest is paid

annually; they have a $1,000 par value; the coupon interest rate is 8.5%; and the yield to maturity is 12%. What is the bond’s current market price? Round your answer to the nearest cent.

Finance