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A Five-Year Bond Has a $1,000 Par Value Bond, a 12

Question 137

Multiple Choice

A five-year bond has a $1,000 par value bond, a 12 percent coupon, and a yield to maturity of 8 percent. Interest is paid semiannually. The bond's price is


A) $864.65.
B) $1081.78.
C) $852.80.
D) $1162.22.
E) $1785.35.

Correct Answer:

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