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Computing Issue Price for Zero Coupon Bonds Underwood Inc. issues $ 3 5 0 , 0 0 0 of zero coupon bonds that mature in

Computing Issue Price for Zero Coupon Bonds

Underwood Inc. issues $

350, 000

of zero coupon bonds that mature in

10

years. Compute the bond issue price assuming that the bonds' market rate is:

3, 6

. 8 %

per year compounded semiannually.

. 10 %

per year compounded semiannually.

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