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What Is the Market Price of a $500,000,ten-Year,12% Bond Issue

Question 106

Multiple Choice

What is the market price of a $500,000,ten-year,12% bond issue sold to yield an effective rate of 10% if interest is paid semiannually?


A) $566,635
B) $562,312
C) $442,650
D) $425,306

Correct Answer:

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