An 8-year annual payment 7% coupon Treasury bond has a price of $1,075. The bond's annual Err must be
A) 13.49%
B) 5.80%
C) 7.00%
D) 1.69%
E) 4.25% 1075 = 70 *PVIFA (Err%, 8) + 1000 *PVIF (Err%, 8) , trial and error or calculator
Correct Answer:
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