An iowa state savings bond can be converted to 100 at


An Iowa state savings bond can be converted to $100 at maturity 6 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must the state sell its bonds? Assume no cash payments on savings bonds prior to redemption.

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Finance Basics: An iowa state savings bond can be converted to 100 at
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