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A Bond Offers an Annual Coupon Rate of 4%, with Interest

Question 2

Multiple Choice

A bond offers an annual coupon rate of 4%, with interest paid semi-annually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of Par value is closest to:


A) 93.07.
B) 96.28.
C) 96.33.

Correct Answer:

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