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Time valueAn Iowa state savings bond can be converted to $500 at maturity 16 years from purchase. If the state bonds are to be competitive

Time valueAn Iowa state savings bond can be converted to $500 at maturity 16 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 9% 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_____.

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