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A Corporate Bond with a $1,000 Face Value Pays a $50

Question 96

Multiple Choice

A corporate bond with a $1,000 face value pays a $50 coupon every six months. The bond will mature in ten years, and has a nominal yield to maturity of 9 percent. What is the price of the bond?


A) $ 634.86
B) $1,064.18
C) $1,065.04
D) $1,078.23
E) $1,094.56

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