Question: How much can be paid for a $ 5 , 0 0 0 , 1 4 % bond with interest paid semiannually, if the bond

How much can be paid for a $5,000,14% bond with interest paid semiannually, if the bond matures 12 years hence? Assume the purchaser will be satisfied with 9% interest compounded semiannually, since the bonds were issued by a very stable and solvent company.

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