Nanotech inc has a bond issue maturing in seven years that, Ask an Expert

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Nanotech, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 10.42 percent (semiannual payments). The company wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 11.10 percent, how much will Nanotech pay to buy back its current outstanding bonds?

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