The Alex Inc. has a bond outstanding with a face value of $1…
The Alex Inc. has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 2% and that the coupon payments are to be made semi-annually. Assuming the appropriate YTM on the Alex bond is 8.0%, then the price that this bond trades for will be closest to:
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