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A bond issue with a face amount of $800,000 bears interest at the rate of 8%. The current market rate of interest is 10%. These
A bond issue with a face amount of $800,000 bears interest at the rate of 8%. The current market rate of interest is 10%. These bonds will sell at a price that is: |
Less than $800,000. | |
The answer cannot be determined from the information provided. | |
More than $800,000. | |
Equal to $800,000. |
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