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Assume That You Can Purchase a 15-Year,$1,000 Face Value Bond

Question 81

Multiple Choice

Assume that you can purchase a 15-year,$1,000 face value bond which pays interest on a semiannual basis,for $1,324.23.If the market's effective annual required rate of return is 8.16 percent (or 4 percent semi-annually) ,how much interest does this bond pay each year?


A) $64.81
B) $56.37
C) $117.50
D) $132.19
E) $126.48

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