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Ten bonds are purchased for $9,946.47 and are kept for 5 years. The bond coupon rate is 9% per year, payable annually. Immediately following the
Ten bonds are purchased for $9,946.47 and are kept for 5 years. The bond coupon rate is 9% per year, payable annually. Immediately following the owner's receipt of the last coupon payment, the owner sells each bond for $50 less than its par value (price discount). The owner will invest in the bonds if the effective annual yield is at least 11%. What is the face value of the the ten bonds?
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