Question: Cavern Buffet Industries issues bonds with a 7% coupon rate and $1000 face value. Interest is paid semi-annually and the bond has 18 years to

Cavern Buffet Industries issues bonds with a 7% coupon rate and $1000 face value. Interest is paid semi-annually and the bond has 18 years to maturity. However, the bond does not pay the first two coupon payments and instead makes these payments at maturity. If investors require a 15% return, what is the bond's value?

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