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A Coupon Bond That Pays Interest Semi-Annually Has a Par

Question 7

Multiple Choice

A coupon bond that pays interest semi-annually has a par value of $1,000,matures in 5 years,and has a yield to maturity of 10%.The intrinsic value of the bond today will be ________ if the coupon rate is 12%.


A) $922.77
B) $924.16
C) $1,075.80
D) $1,077.22
E) none of the above

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