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Julia Just Purchased a $1,000 Par Value Bond with a 10

Question 11

Multiple Choice

Julia just purchased a $1,000 par value bond with a 10 percent annual coupon rate and a life of 20 years. The bond has four years remaining until maturity, and the yield to maturity is 12 percent. How much did Julia pay for the bond?


A) $1,063.40
B) $1,000
C) $939.25
D) None of these are correct.

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