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Suppose a U

Question 72

Multiple Choice

Suppose a U.S.treasury bond will pay $1,050 five years from now.If the going interest rate on 5-year treasury bonds is 4.25%,how much is the bond worth today?


A) $852.72
B) $878.31
C) $750.40
D) $656.60
E) $673.65

Correct Answer:

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