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How Much Would an Investor Expect to Pay for a $1,000

Question 31

Multiple Choice

How much would an investor expect to pay for a $1,000 par value bond with a 9 percent annual coupon that matures in 5 years if the interest rate is 7 percent?


A) $696.74
B) $1,075.82
C) $1,082.00
D) $1,123.01 Using the BAII Plus Calculator:

Correct Answer:

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