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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

  • More than $509,000.

  • or

  • Equal to $509,000.

  • or

  • The answer cannot be determined from the information provided.

  • or

  • Less than $509,000

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