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A $100 000 Bond Has a Term to Maturity of Six

Question 34

Multiple Choice

A $100 000 bond has a term to maturity of six years with half-yearly coupons set at 6% p.a.Calculate the bond price if the yield is 7.5%.


A) $91327.88 \$ 91 \quad 327.88
B) $92447.23 \$ 92 \quad 447.23
C) $92857.98 \$ 92 \quad 857.98
D) $93231.96 \$ 93 \quad 231.96

Correct Answer:

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