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Enviro Company issues 10%, 10-year bonds with a par value of $210,000 and semiannual interest payments. On the issue date, the annual market rate for

Enviro Company issues 10%, 10-year bonds with a par value of $210,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12%, which implies a selling price of 88 1/2.

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