A 20-year $10,000 bond is redeemable at par and pays interest at j2 = 8% and is purchased to yield j2 = 6%.After 8 years,the bond is sold to an investor who desires a yield of j2 = 7%.What price does this investor pay for the bond?
A) $12,311.48
B) $11,693.55
C) $11,067.75
D) $10,802.92
Correct Answer:
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