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A bond just purchased pays annual interest of 10 percent. In seven years it matures at its face value of $25,000. What price was paid

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A bond just purchased pays annual interest of 10 percent. In seven years it matures at its face value of $25,000. What price was paid if current yields on a bond of this risk are 8.5 percent? (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to 2 decimal places.) 1) $25.919.44 2) $26,920 3) $26,919,44 4) 25.917 .44 5) $26,917.44

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