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What would be a fair price for the bonds

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Reference no: EM132564324

Suppose our firm decides to issue 7-year bonds with a par value of $1,700 and annual coupon payments. The return on other bonds of similar risk is 7%, so we decide to offer a 7% coupon interest rate.

Question 1: What would be a fair price for these bonds?

Reference no: EM132564324

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