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New Business Ventures, Inc. has an outstanding perpetual bond with a 10% coupon rate that can be called in one year. The bond makes annual coupon payments. The call premium is set at $150 over par value. There is a 40% chance that the interest rate will be 12%, and a 60% chance that the interest rate will be 7%. If the current interest rate is 10%, what is the current market price of the bond?

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