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A $10,000,8%,5-Year Bond Pays Fixed Interest of $400 Every 6

Question 110

Multiple Choice

A $10,000,8%,5-year bond pays fixed interest of $400 every 6 months.If the current market rate of interest is 6%,what is the present value of the bond? (Round to the nearest dollar.)


A) $10,004
B) $10,882
C) $10,852
D) $10,054

Correct Answer:

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