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A Bond with a Face Value of $10,000 (And No

Question 43

Multiple Choice

A bond with a face value of $10,000 (and no coupon payments) is always worth


A) $10,000
B) less than $10,000 before the maturity date
C) more than $10,000 if the interest rate is high enough
D) $10,000 on the date of purchase
E) $9,090.91 two years before the maturity date

Correct Answer:

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