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Time value An lowa state savings bond can be converted to $1,000 at maturity 20...

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Accounting

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Time value An lowa state savings bond can be converted to $1,000 at maturity 20 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 4% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption. Ignore taxes. The state must sell its bonds for $(Round to the nearest cent.)

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