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A $10,000 Six-Year Accumulation Bond (Compound Interest Bond)with a Coupon

Question 85

Multiple Choice

A $10,000 six-year accumulation bond (compound interest bond) with a coupon rate of j2 = 4% is purchased for $9,541.62.The pricing yield rate is at j2 = 5%.Determine the redemption value of this bond (nearest dollar) .


A) $9,419
B) $10,391
C) $10,073
D) $10,150

Correct Answer:

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