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What is the issue price of the bond

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Question - Russel's PCI issues a $400,000 bond on 5/1/20Y2. The bond matures in 10 years, has a stated rate of 6%, and pays interest annually. Alternatively, you could invest in a similar risk investment and earn a 4% return. Will this bond be sold at a discount or a premium? What is the issue price of the bond?

Reference no: EM133045708

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