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Dempsey Railroad Co. is about to issue $400,000 of 10-year bond paying an 11% interest rate, with interest payable semiannually. The discount rate for such

Dempsey Railroad Co. is about to issue $400,000 of 10-year bond paying an 11% interest rate, with interest payable semiannually. The discount rate for such securities is 12%.

In this case , how much can Dempsey expect to receive from the sale of these bonds?

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