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Your Client Has Been Offered a 5-Year,$1,000 Par Value Bond

Question 115

Multiple Choice

Your client has been offered a 5-year,$1,000 par value bond with a 10 percent coupon.Interest on this bond is paid quarterly.If your client is to earn a simple rate of return of 12 percent,compounded quarterly,how much should she pay for the bond?


A) $800
B) $926
C) $1,025
D) $1,216
E) $981

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