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A $10,000 Bond Is Redeemable at Par in 5 Years

Question 20

Multiple Choice

A $10,000 bond is redeemable at par in 5 years.When the yield rate is j₂= 12%,the purchase price is $8527.98.What is the coupon rate,j₂?

A) 4.0%
B) 5.0%
C) 6.6%
D) 8.0%

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