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Consider a Bond with Exactly Three Years to Maturity,a Face

Question 12

Multiple Choice

Consider a bond with exactly three years to maturity,a face value of $100 and a coupon interest rate of 6.6% p.a. ,payable half yearly.If the required yield is 7.2% p.a. ,what is the price of the bond?


A) $98.40
B) $98.04
C) $98.00
D) Cannot be calculated as not enough information is provided.

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