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bbington Inc. issues $ 1 , 9 6 0 , 0 0 0 of 9 % bonds that pay interest semiannually and mature in 1

bbington Inc. issues $

1, 960, 000

9 %

bonds that pay interest semiannually and mature in

10

years. Compute the bond issue price assuming that the prevailing market rate of interest is:

Note: Round answers to the nearest dollar, if applicable.

Bond Issue Price

. 8 %

per year compounded semiannually. Answer

1

. 10 %

per year compounded semiannually. Answer

2

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