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P5-14 Time value An lowa state savings bond can be converted to $100 at maturity 6 years from purchase. If the state bonds are to

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P5-14 Time value An lowa state savings bond can be converted to $100 at maturity 6 years from purchase. If the state bonds are to be competitive with U.S. savingsbonds, which pay 3% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption. Ignore taxes

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