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Star Corp Purchases a $100,000 Face Value Bond Which Matures in in Two

Question 100

Multiple Choice

Star Corp. purchases a $100,000 face value bond which matures in two years. The coupon rate is 6% and the market rate is 7%. At what amount will the bond be recorded (rounded) ?


A) $5,093
B) $98,192
C) $100,000
D) $101,703

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