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Buddy Bought a Bond Last Year for $10,000

Question 19

Multiple Choice

Buddy bought a bond last year for $10,000.His bond pays $1,000 a year.This year a bond that sells for $10,000 pays $900 a year.If Buddy were to sell his (old) bond,its price would be approximately


A) $11,111.
B) $10,120.
C) $9,000.
D) $12,000.
E) $9,500.

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