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An 8 Percent Annual Coupon,noncallable Bond Has Ten Years Until

Question 24

Multiple Choice

An 8 percent annual coupon,noncallable bond has ten years until it matures and a yield to maturity of 9.1 percent.What should be the price of a 10-year bond of equal risk which pays an 8 percent semiannual coupon? Assume both bonds have a maturity value of $1,000.


A) $898.64
B) $736.86
C) $854.27
D) $941.08
E) $964.23

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