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A $1,000 Face Value Bond Currently Has a Yield to Maturity

Question 72

Multiple Choice

A $1,000 face value bond currently has a yield to maturity of 6.69 percent.The bond matures in three years and pays interest annually.The coupon rate is 7 percent.What is the current price of this bond?


A) $948.01
B) $949.60
C) $1,005.26
D) $1,008.18
E) $1,010.13

Correct Answer:

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