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A $50,000 Strip Bond Was Discounted to $21,680

Question 10

Multiple Choice

A $50,000 strip bond was discounted to $21,680. The market rate was 7.4% compounded semi-annually. How much time was left before the bond reached maturity?


A) 11.5 years
B) 21.9 years
C) 11.7 years
D) 5.04 years
E) 23 years

Correct Answer:

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