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Larkspur Inc. issues $3,800,000 of 7% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of

Larkspur Inc. issues $3,800,000 of 7% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%.

What amount will Larkspur receive when it issues the bonds?

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