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A Five-Year Bond with a $1000 Face Value Has a Yield

Question 1

Multiple Choice

A five-year bond with a $1000 face value has a yield to maturity of 5.5% and its coupon rate is 6.0% paid annually. The dirty price of this bond exactly 6 months after its second coupon payment is closest to:


A) $1043.49
B) $684.67
C) $1005.87
D) $983.93

Correct Answer:

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