Question: ABC Corp. is in need of cash. It issues bonds with a $ 3 million face value. The bonds have an 8 % coupon rate.

ABC Corp. is in need of cash. It issues bonds with a $3 million face value. The bonds have an 8% coupon rate. The market rate is also 8%. The bonds have a life of 7 years, and are compounded semiannually. What is the price of these bonds upon issuance?

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