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Big Guns Municipal Bond Dealer Corporation Buys 100M of 7

Question 110

Multiple Choice

Big Guns Municipal Bond Dealer Corporation buys 100M of 7% 20-year GO bonds at par. The bonds are marked up and immediately re-offered for sale. Which of the following re-offering prices would probably be deemed excessive?


A) 6.8% net
B) 6.9% less 0.5
C) $100.75
D) 5.00% net

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