Arnez Corporation is considering purchasing bonds of Ball Company as
Arnez Corporation is considering purchasing bonds of Ball Company as an investment. The bonds have a face value of $90,000 with a 9% interest rate. The bonds mature in 6 years and pay interest semiannually.

Instructions
(a) What is the most Arnez should pay for the bonds if it desires a 10% return?
(b) What is the most Arnez should pay for the bonds if it desires an 8% return?

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