Zabberer Corporation bonds pay a coupon rate of interest of 1 4 percent annually and have a
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Question:
Zabberer Corporation bonds pay a coupon rate of interest of percent annually and have a maturity value of $ The bonds are scheduled to mature at the end of years. The company has the option to call the bonds in years at a premium of percent above the maturity value. You believe the company will exercise its option to call the bonds at that time. If you require a pretax return of percent on bonds of this risk, how much would you pay for one of these bonds today? Round your answer to the nearest dollar.
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