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Posted on Jul 31, 2024

A $ 2 5 0 , 0 0 0 bond having a bond rate of 6 % payable annually is purchased for $ 2 3

A $

250, 000

bond having a bond rate of

6 %

payable annually is purchased for $

235, 000

and kept for

6

years, at which time it is sold. How much should the bond be sold for in order to yield at a

5 %

effective annual return on the investment?

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