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Akers Company: selling their bonds

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Akers Company sold bonds on July 1, 2005, with a face value of $100,000. These bonds are due in 10 years. The state's annual interest rate is 6% per year, payable semiannually on June 30 and December 31. These bonds were sold to yield 8%.

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How much did these bonds sell for on July 1, 2005?

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Solution Summary

This solution provides assistance determining how much the bonds sold for on July 1st, 2005.

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