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A $1000 Bond Is Purchased at a Price to Yield

Question 64

Multiple Choice

A $1000 bond is purchased at a price to yield 6.5% compounded annually.The bond has 13% annual coupons.You are given that the interest portion of the second coupon is $93.38.What is the price of the bond? (Answer to the nearest dollar)


A) $1410
B) $1471
C) $1500
D) $1837

Correct Answer:

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