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A $130,000 bond bearing interest at 7.5% payable annually is bought four years before maturity to yield 7.8% compounded quarterly. If the bond is redeemable

$130,000

bond bearing interest at

7.5%

payable

annually

is bought

four

years before maturity to yield

7.8%

compounded

quarterly.

If the bond is redeemable at par, what is the purchase price?

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