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Bonita Inc. issues $2,800,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of

Bonita Inc. issues $2,800,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12%.

What amount will Bonita receive when it issues the bonds?

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