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A $1,000 Par Value Bond That Makes ANNUAL Interest Payments

Question 32

Multiple Choice

A $1,000 par value bond that makes ANNUAL interest payments of $50 and matures in four years sells for $980.What is the yield to maturity of the bond?


A) 5.57%
B) 2.47%
C) 4.54%
D) 2.04%

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