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A $ 100,000, 5-Year Bond with an Interest Rate of 5

Question 48

Multiple Choice

A $ 100,000, 5-year bond with an interest rate of 5% is for sale when the market interest is at 5%. This bond will sell at


A) a discount.
B) a premium.
C) neither a discount or a premium.
D) more information is needed.

Correct Answer:

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