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Lara's Grandmother Left Her a $5,000 Bond with Exactly One

Question 137

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Lara's grandmother left her a $5,000 bond with exactly one year left until redemption.It pays a nominal interest rate of 6 percent.The current interest rate on similar bonds is 3 percent.Lara has decided to sell the bond to raise money for a second-hand car.Ignoring brokerage fees and other transactions costs,approximately how much will Lara get for her bond?

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