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Dexter Mills Issued 20-Year Bonds a Year Ago at a Coupon

Question 106

Multiple Choice

Dexter Mills issued 20-year bonds a year ago at a coupon rate of 10.2 percent.The bonds make semiannual payments.The yield-to-maturity on these bonds is 9.2 percent.What is the current bond price?


A) $985.55
B) $991.90
C) $1,042.16
D) $1,089.02
E) $1,098.00

Correct Answer:

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