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A Bond Has a Maturity Value of $500,000 Payable in 3

Question 104

Multiple Choice

A bond has a maturity value of $500,000 payable in 3 years. These bonds have a 5% coupon rate payable annually, and the market yield was 2% when the bonds were purchased. How much will be recorded for the bond purchase (rounded) ?


A) $43,257
B) $543,257
C) $500,000
D) $500,001

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