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A $1000 Bond Pays Semi-Annual Coupons of $50 Every April

Question 60

Multiple Choice

A $1000 bond pays semi-annual coupons of $50 every April 1st and October 1st.The bond is purchased on February 26,2011.The price on October 1,2010 to yield j2 = 9% is $1056.17.What is the market (or clean) price on February 26,2011?


A) $1044.82
B) $1054.00
C) $1094.66
D) $1135.48

Correct Answer:

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