(Solution) - The H H Computer Company has an outstanding issue of bond -(2025 Original AI-Free Solution)

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The H&H Computer Company has an outstanding issue of bond with a par value of $1,000, paying 12 percent coupon rate semi-annually. The bond was issued 25 years ago and has 5 years to maturity. What is the value of the bond assuming 14 percent rate of interest if you plan on purchasing the bond today?