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Company XYZ issued collateral bonds 5 years ago that have a face value of $20,000 each and a coupon rate of 10% per year, payable

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Company XYZ issued collateral bonds 5 years ago that have a face value of $20,000 each and a coupon rate of 10% per year, payable semiannually. If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 20% per year, compounded semiannually, what is the present worth (now) of one bond? 2

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