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At the beginning of his current tax year David invests $12,000 in original issue U. Treasury bonds with a $10,000 face value that mature in exactly...

At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 5 percent.

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