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In each succeeding payment on an installment note:
8 A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 8%. Th
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ANS The bond will sell at a price of : $437500 Workings : Bond price = A where: - A = Coupon amount ice.6$500000 x 74.) = $ 3

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