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Determine the price of a $300,000 bond issue under each of the following three independent assumptions : Assumption Maturity Interest Paid Stated Interest Rate Effective

Determine the price of a $300,000 bond issue under each of the following three independent assumptions:

Assumption	Maturity	Interest Paid	Stated Interest Rate	Effective (or Market) Interest Rate
1	10 years	annually	7%	12%
2	10 years	semiannually	8%	12%
3	20 years	semiannually	10%	12%

Explain each answer.

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