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For a $10,000 Bond with Semi-Annual Coupons,you Are Given the Following

Question 31

Multiple Choice

For a $10,000 bond with semi-annual coupons,you are given the following:
• The redemption value is $10,400
• The book value one period before the redemption date is $10,347.57
• Interest on the book value in the last coupon period is $369.93
What is the bond coupon rate,j2?


A) 6.35%
B) 7.15%
C) 7.40%
D) 8.45%

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