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Westover's Has an Outstanding Bond with a Coupon Rate of 5.5

Question 44

Multiple Choice

Westover's has an outstanding bond with a coupon rate of 5.5 percent that matures in 12 years.The bond pays interest semiannually.What is the market price of one $1,000 face value bond if the yield to maturity is 7.13 percent?


A) $934.59
B) $880.86
C) $870.01
D) $905.92
E) $947.87

Correct Answer:

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