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Lunar, Inc., plans to issue $1,260,000 of 12% bonds that will pay interest semiannually and mature in five years. Assume that the effective interest rate

Lunar, Inc., plans to issue $1,260,000 of 12% bonds that will pay interest semiannually and mature in five years.

Assume that the effective interest rate is 10% per year compounded semiannually.

Calculate the selling price of the bonds.

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