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Assume That a 15-Year,$1,000 Face Value Bond Pays Interest of $37.50

Question 46

Multiple Choice

Assume that a 15-year,$1,000 face value bond pays interest of $37.50 every 3 months.If you require a simple annual rate of return of 12 percent,with quarterly compounding,how much should you be willing to pay for this bond?


A) $821.92
B) $1,207.57
C) $986.43
D) $1,120.71
E) $1,358.24

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