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A $10,000 Bond Issue with a Stated Rate of Interest

Question 45

Multiple Choice

A $10,000 bond issue with a stated rate of interest of 7%, when the market rate of interest is 8%, means that the bond will be sold for:


A) $10,000.
B) $10,800.
C) less than $10,000.
D) the maturity value.
E) $10,700.

Correct Answer:

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