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What was the approximate fair market value of the bonds

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Question - Ripley Co. issued $250,000 of 10 year zero-coupon bonds. The market rate of interest is 5% at the time of issuance. After five years, the book value of the bonds on the company's books was $195,882. If the market rate of interest after five years was 6%, what was the approximate fair market value of the bonds?

A. $220,274

B. $225,000

C. $195,882

D. $186,815

Reference no: EM132540082

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