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How Much Should You Be Prepared to Pay for a $1,000

Question 92

Multiple Choice

How much should you be prepared to pay for a $1,000 10-year bond with an annual coupon of 6% and a yield to maturity of 7.5%?


A) $411.84
B) $897.04
C) $985.00
D) $1,000.00

Correct Answer:

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