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Time value An Iowa state savings bond can be converted to $100 at maturity 9 years from purchase If the state bonds are to be

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Time value An Iowa state savings bond can be converted to $100 at maturity 9 years from purchase If the state bonds are to be competitive with U S savings bonds, which pay 5% 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 The state must sell its bonds for $ (Round to the nearest cent)

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