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When I worked with COBOL I mostly worked in a similar hosted setting, using only a dumb 3270 terminal to write my code. However it's not the case universally, it is/was also possible to develop COBOL code on a PC that simulated the mainframe runtime (MicroFocus COBOL, if it's still called that, is what we used).

My father's one(ish)-man business was a PC-based COBOL application that began with the launch of the IBM-PC until he retired in the earlymid 2000s. I worked on it for a few years in the 90s (SPF-PC!).

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