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3 July, 13:37

Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price, approximately what was the bond's selling price?

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  1. 3 July, 15:34
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    bond's selling price is $6154

    Explanation:

    given data

    face value = $5,000

    interest = 8 % of face value

    rate = 6.5 %

    to find out

    bond's selling price

    solution

    we find interest that is

    interest = 8 % of face value

    interest = 8 % * 5000

    interest = 400

    so we consider bond selling price is x

    so

    bond selling equation will be

    interest = rate * bond selling price

    400 = 0.065 * x

    x = 6154

    so bond's selling price is $6154
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