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Belmont Corporation issues $ 1 0 0 , 0 0 0 of 7 % bonds, due in 1 0 years, when the market rate of

Belmont Corporation issues $100,000 of 7% bonds, due in 10 years, when the market rate of interest is 5%. Interest is paid semiannually on June 30 and December 31. The issue price of the bonds is:
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$104,646
$115,589
$108,752
$85,788

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