The Ford Prefect Company has bonds outstanding with a face v…
The Ford Prefect Company has bonds outstanding with a face value of $1,000 that reach maturity in 15 years. The bond’s indenture indicates that the stated coupon rate for this bond is 9% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the bond is 5%, then the price that this bond trades for will be closest to:
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