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Ginny's Aunt Has Sent Her a $10,000 Bond to Help

Question 132

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Ginny's aunt has sent her a $10,000 bond to help finance her studies.The bond pays an annual interest of 8 percent and has two years left until redemption.Ginny wishes to cash in the bond now when the current interest rate is 5 percent.Ignoring brokerage and other costs,approximately how much will Ginny get for the bond?

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