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A $1000 Bond Is Redeemable at 104

Question 29

Multiple Choice

A $1000 bond is redeemable at 104.5.The bond is bought such that yield rate > bond rate.The absolute value of the sum of the book value adjustment column is $38.75.What is the price of the bond?


A) $961.25
B) $1006.25
C) $1038.75
D) $1083.75

Correct Answer:

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