Question: Firm ABC plans to issue a $ 1 , 0 0 0 par bond. The coupons are paid annually. The first payment is $ 6

Firm ABC plans to issue a $1,000 par bond. The coupons are paid annually. The first payment is $60 and will grow at 3% every year forever. The YTM is 8%. What is the issue price of the bond?

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