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Posted on Oct 06, 2024

A $ 2 0 0 , 0 0 0 bond having a bond rate of 5 % payable annually is purchased for $ 1 9

A $

200, 000

bond having a bond rate of

5 %

payable annually is purchased for $

193, 000

and kept for

8

years, at which time it is sold.

How much should it sell for in order to yield a

10 %

effective annual return on the investment?

305, 000

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