Question: A $1,000 par value, 30 year bond is 5 years old. It pays interest once a year at an annually compounded coupon rate of 12%.

A $1,000 par value, 30 year bond is 5 years old. It pays interest once a year at an annually compounded rate of 12%. The market is returning 8% on comparable bonds. What is the bond's market price?

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