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Baggins Company sold $2,000,000 worth of 10% semiannually paid, ten year bonds on July 1st, 2019,...

Baggins Company sold $2,000,000 worth of 10% semiannually paid, ten year bonds on July 1st, 2019, at a time when the market rate of interest on similar investments was 12%.   The bonds pay interest on December 31st and June 30th.

Using the appropriate Present Value Table(s), determine the amount the bonds should sell for; their present value.

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