Question: Java spirit is seeking financing for a new initiative it is contemplating. It intends to issue a new series of bonds on January 1, 2011,

Java spirit is seeking financing for a new initiative it is contemplating. It intends to issue a new series of bonds on January 1, 2011, with a par value of $1000. They are expected to mature in 21 years and will have a coupon of 7% paid semi-annually.

i) what is the expected price of the bond on January 1, 2022, if interest rates were 12%

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