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Determine the price of a $1.3 million bond issue under each of the following independent assumptions: Maturity 16 years, interest paid semiannually, stated rate 10%,

Determine the price of a $1.3 million bond issue under each of the following independent assumptions:

Maturity 16 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%.

Maturity 16 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%.

Price of bonds:

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