Question: Firm ABC plans to issue a $ 1 , 0 0 0 par bond. Coupon rate is 6 % and coupons are paid annually. The

Firm ABC plans to issue a $1,000 par bond. Coupon rate is 6% and coupons are paid annually. The coupon payments will last forever. The YTM is 8%. What is the issue price of the bond?

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