Question: ABC corp. issues a 7 year $1,000 face value bond that has an annual coupon rate of 8.44% and pays interest semi-annually. Similar bonds are

ABC corp. issues a 7 year $1,000 face value bond that has an annual coupon rate of 8.44% and pays interest semi-annually. Similar bonds are offering a yield to maturity of 12.9%. What should be the market price of the bond?

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