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A Nine- Year Bond with Annual Coupon Payments Has a 7

Question 111

Multiple Choice

A nine- year bond with annual coupon payments has a 7% annual coupon rate and an 8% YTM. It is selling for 93.63% of par. What are the annual payments on a $1,000 par value bond?


A) $70
B) $5.60
C) $80
D) $75.60

Correct Answer:

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