Question: ABC Inc. bonds have a $1,000 face value. The promised annual coupon is $72. The bonds mature in 10 years. There are 10 coupon payments

ABC Inc. bonds have a $1,000 face value. The promised annual coupon is $72. The bonds mature in 10 years. There are 10 coupon payments of $72 each starting a year from now, and the last payment 10 years from now is coupon plus face.

The market's required return for these bonds is 8%. What is the price of these bonds?

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