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A Bond with a 12 Percent Quarterly Coupon Rate Has

Question 21

Multiple Choice

A bond with a 12 percent quarterly coupon rate has a yield to maturity of 16 percent. The bond has a par value of $1,000 and matures in 20 years. Based on this information, a fair price of thisbond is $____.


A) 1,302
B) 763
C) 761
D) 1,299

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