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MBIA, Inc, a Municipal Bond Insuring Company, Has a Bond Issue

Question 31

Multiple Choice

MBIA, Inc., a municipal bond insuring company, has a bond issue that is selling for $80.05 per $100 of par. The bond has a coupon rate of 7%, with semiannual payments, and matures in 2025. The current yield on this bond is:


A) 8.745%.
B) 7.000%.
C) 9.550%.
D) none of the above.

Correct Answer:

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