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Simply Purchases a $200,000 Face Value Bond Which Matures in Two

Question 133

Multiple Choice

Simply purchases a $200,000 face value bond which matures in two years. The coupon rate is 6% and the market rate is 5%. How much premium or discount will be amortized in the first year, if any?


A) $1,814.05
B) $3,718.92
C) $10,000.00
D) $12,000.00

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