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A 20 Year Bond with Semi-Annual Coupons at J2 =

Question 7

Multiple Choice

A 20 year bond with semi-annual coupons at j2 = 7% is bought at a premium to yield j2 = 6% If the book value adjustment portion of the coupon paid at the end of 2 years is $30,what is the book value adjustment portion of the coupon paid at the end of 8 years?


A) $35.82
B) $42.77
C) $44.06
D) $45.33

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