At what price must the state sell its bonds

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Reference no: EM131334486

An Indiana state savings bond can be converted to $100 at maturity six years from purchase.

If the state bonds are to be competitive with U.S. savings bonds, which pay 8 percent annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds before redemption.

Reference no: EM131334486

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