Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 4% for the f

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answerhappygod
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Diamond Corporation is planning a bond issue with an escalating coupon rate. The annual coupon rate will be 4% for the f

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Diamond Corporation is planning a bond issue with an escalating
coupon rate. The annual coupon rate will be 4% for the first 2
years, 5% for the subsequent 3 years, and 6% for the final 4 years.
If bonds of this risk are yielding 7%, estimate the bond's current
price. Face value of the bond is $1,000. (Round your
answer to the nearest cent.)
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