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q) What is the face value of a strip bond that was purchased for $6,936? This strip bond was purchased 10 years ago with 1.2%

q) What is the face value of a strip bond that was purchased for $6,936? This strip bond was purchased 10 years ago with 1.2% compounded semi-annually interest.

NOTE: Strip bonds usually have face values that are multiples of $1000. This answer will probably not, but it's the process that's important.

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