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A Bond Has a $10,000 Face Value, Ten Years to Maturity

Question 79

Multiple Choice

A bond has a $10,000 face value, ten years to maturity, and 8% semiannual coupon payments. What would be the expected difference in this bond's price immediately before and immediately after the next coupon payment?


A) $800
B) $400
C) $1200
D) $200

Correct Answer:

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