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A Coupon Bond That Pays Interest Annually Has a Par

Question 6

Multiple Choice

A coupon bond that pays interest annually has a par value of $1,000,matures in 8 years,and has a yield to maturity of 9%.The intrinsic value of the bond today will be ______ if the coupon rate is 6%.


A) $833.96
B) $620.92
C) $1,123.01
D) $886.28
E) $1,000.00

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