Madsen Motors's bonds have 17 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8%; and the yield to maturity is 10%. What is the bond's current market price? Round your answer to the nearest cent.

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A: Solution:When a value increases at a constant rate, the initial value is called present value and…

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A: Here, YearCash Flows0 $                         (28,200.00)1 $                           12,200.002…

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