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A $1000 Bond with Semi-Annual Coupons Is Redeemable for $960

Question 33

Multiple Choice

A $1000 bond with semi-annual coupons is redeemable for $960 in 6 years.The write-down (book value adjustment) in the first coupon period is $1.79.What is the price of the bond in order to yield j2 = 10%?


A) $931.51
B) $971.51
C) $988.49
D) $1028.49

Correct Answer:

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