Question: wifty Hills Ltd. issued five-year bonds with a face value of $ 110,000 on January 1. The bonds have a coupon interest rate of 5%

wifty Hills Ltd. issued five-year bonds with a face value of $ 110,000 on January 1. The bonds have a coupon interest rate of 5% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 3% when the bonds were issued at a price of 1.08.

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