Assume you bought a $1000 par-value bond in 2004 for 75 1/4 with an interest rate of 7.5%.If you held the bond until maturity in 2014,what would be the total amount that you would earn on this bond?
A) $1000.00
B) $750
C) $779.50
D) $887.50
E) $997.50
Correct Answer:
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