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Ten Years Ago,your Grandparents Gifted You a 20-Year,$1,000 Bond

Question 11

Multiple Choice

Ten years ago,your grandparents gifted you a 20-year,$1,000 bond.The interest rate at the time of purchase was 5%.Today,comparable bonds are paying 7%.Approximately how much could you sell this bond for?


A) $860
B) $800
C) $918
D) $1,200

Correct Answer:

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