Question: 8 - Smalltown issued 2 0 - year bonds to finance a project. Smalltown makes interim payments to bondholders every year. The amount of the
Smalltown issued year bonds to finance a project. Smalltown makes interim payments to
bondholders every year. The amount of the interim payments is
The face or par value, multiplied by the effective interest rate.
The face or par value, multiplied by the bond interest rate.
The sales price multiplied by the bond rate.
The purchase price multiplied by the interest rate.
What is the future value of the following cash flow?
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