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Suppose the Current Interest Rate Is 5% and You Pay

Question 138

Multiple Choice

Suppose the current interest rate is 5% and you pay $250 for a bond.What is the total payment that should be made to you in one year?


A) $12.50
B) $262.50
C) $237.50
D) $255.00
E) $267.50

Correct Answer:

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