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A $20,000 Face Value Strip Bond Is Sold for $8,524

Question 52

Multiple Choice

A $20,000 face value strip bond is sold for $8,524 to yield 8.4% compounded semi-annually. Calculate the maturity date to the nearest day.


A) 11 years and 110 days
B) 10 years and 110 years
C) 10 years and 133 days
D) 9 years and 110 days
E) 9 years and 133 days

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