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Two Years Ago Bonds Were Issued at Par with 10

Question 101

Multiple Choice

Two years ago bonds were issued at par with 10 years until maturity and a 7% annual coupon.If interest rates for that grade of bond are currently 8.25%,what will be the market price of these bonds?


A) $917.06
B) $928.84
C) $987.50
D) $1,000.00

Correct Answer:

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