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A $100,000 5-Year 6% Bond Is Issued on January 1,2012

Question 59

Multiple Choice

A $100,000 5-year 6% bond is issued on January 1,2012.The bond pays interest annually.The market rate is 7%.What is the discount or premium of the sale of the bonds,rounded to nearest dollar?


A) $4,100 discount
B) $4,100 premium
C) $95,900
D) $100,000

Correct Answer:

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