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A Bond Has 5 Years to Mature

Question 92

Multiple Choice

A bond has 5 years to mature.It pays 5.60% semi-annually.If other bonds with similar risks are yield 6.2%,paid semi-annually,what is the maximum price you would pay for this bond?


A) $974.54
B) $1,254.86
C) $887.97
D) $847.47

Correct Answer:

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