Compute the new price of the bond-stark corporation

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Stark Corporation issued bonds at $1,000 per bond. The bonds had a 35 year life with a coupon rate of 8% paid annually. Assume 10 years later, due to bad publicity, the risk premium for the bonds have caused the risk premium to increase the overall market yields to 11%. The bonds have 25 years remaining until maturity. Compute the new price of the bond. Round to 2 decimal places.

Reference no: EM132714173

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