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Aaron Invested on a Corporate Bond with a Face Value

Question 7

Multiple Choice

Aaron invested on a corporate bond with a face value of $10,000 at a discounted price of $9,000. The bond pays a quarterly dividend. What is the quarterly dividend Aron should get if he hopes to get a 10% return on his investments? Assume the bond matures in 20 years.


A) $201
B) $221
C) $190
D) $152

Correct Answer:

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