Question: Problem ABC Company has outstanding 8.5% bond having face value of $1,000 that matures in next 7 years. After maturity, it will be redeemed at

Problem ABC Company has outstanding 8.5% bond having face value of $1,000 that matures in next 7 years. After maturity, it will be redeemed at $950. What value you should place on this bond if market rate of return is 9.5% compounded annually?

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