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A $5,000 Face Value Bond Is Quoted at a Bank

Question 59

Multiple Choice

A $5,000 face value bond is quoted at a bank discount yield of 2.8 percent.What is the current value of the bond if it matures in 36 days?

A) $4,972
B) $4,978
C) $4,982
D) $4,986
E) $4,991

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