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One hundred $1,000 bonds having bond coupon rates of 8% per year payable anually are purchased for $95,250 and kept for 6 years, at which
One hundred $1,000 bonds having bond coupon rates of 8% per year payable anually are purchased for $95,250 and kept for 6 years, at which time they are sold. Determine the selling price that will yield a 7% effective annual return on the investment. The answer is $85,718.21 but can not figure out the steps to get the answer. Thanks
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