Question: A corporation has a bond issue outstanding with a 3% semiannual coupon rate and 8 years remaining until maturity. The par value of the bond

A corporation has a bond issue outstanding with a 3% semiannual coupon rate and 8 years remaining until maturity. The par value of the bond is $1,000. Determine the current value of the bond if present market conditions justify a 5% nominal interest rate.

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