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A $1200 bond bearing interest at 3.5% payable semi-annually is due in 14 years. Money is worth 5.7% compounded semi-annually. What is the bond rate?

A $1200 bond bearing interest at 3.5% payable semi-annually is due in 14 years. Money is worth 5.7% compounded semi-annually.

What is the bond rate?

a. 5.7% compounded semi-annually

b. 3.5% payable semi-annually

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