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If You Held a Bond with Face Value of $10

Question 55

Multiple Choice

If you held a bond with face value of $10 000 maturity in 12 years,semi-annual coupon of 6 percent,and the coupons on par value bonds with the same maturity today are 3 percent,how much would your bond be worth now on the secondary market?


A) $10 000
B) $13 005
C) $19 781
D) $14 908

Correct Answer:

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