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Bank of the south issues 100,000 bonds as a response to the Reserve Central banks initiatives to increase domestic saving. The bonds have a face
Bank of the south issues 100,000 bonds as a response to the Reserve Central banks initiatives to increase domestic saving. The bonds have a face value of $40,000 each, a bond interest rate of 8% per year payable annually and maturity date of 14 years. What is the current price of a bond, if the market interest rate is 9% per year, compounded semiannually?
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