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24-11-2022
Business

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Abbington Inc. issues $700,000 of 9% bonds that pay interest semiannually and mature in 10 years. Compute the bond issue price assuming that the prevailing market rate of interest is: (note: round your answer to the nearest whole dollar)
a. 8% per year compounded semiannually
b. 10% per year compounded semiannually

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