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Time value An lowa state savings bond can be converted to $750 at maturity 10 years from purchase. If the state bonds are to be

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Time value An lowa state savings bond can be converted to $750 at maturity 10 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 4% 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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