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A bond issue with a face amount of $509,000 bears interest at the rate of 10%. The current market rate of interest is also 10%.
A bond issue with a face amount of $509,000 bears interest at the rate of 10%. The current market rate of interest is also 10%. These bonds will sell at a price that is:
Multiple Choice
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More than $509,000.
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or
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Equal to $509,000.
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or
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The answer cannot be determined from the information provided.
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or
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Less than $509,000
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