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The Present Value of a $10,000, 5-Year Bond, Will Be

Question 196

Multiple Choice

The present value of a $10,000, 5-year bond, will be less than $10,000 if the


A) contractual interest rate is less than the market interest rate.
B) contractual interest rate is greater than the market interest rate.
C) bond is convertible.
D) contractual interest rate is equal to the market interest rate.

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