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The 6 Percent Coupon Bonds of Precision Engineering Are Selling

Question 91

Multiple Choice

The 6 percent coupon bonds of Precision Engineering are selling for 98 percent of par value.The bonds mature in eight years and pay interest semiannually.These bonds have current yield of _____ percent,a yield to maturity of _____ percent,and an effective annual yield of _____ percent.


A) 6.12; 6.32; 6.36
B) 6.12; 6.32; 6.42
C) 6.12; 6.36; 6.42
D) 6.23; 6.32; 6.36
E) 6.23; 6.36; 6.42

Correct Answer:

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