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Calculate the Market Rate of the Following Petro-Canada $10,000 Bond

Question 154

Multiple Choice

Calculate the market rate of the following Petro-Canada $10,000 bond. The annual coupon rate (payable in semiannual instalments) is 6%, the current market rate is 7.8% compounded semiannually and the bond will mature in 13 years.


A) $13,932
B) $11,260
C) $9,036
D) $8,874
E) $8,546

Correct Answer:

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