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A $10,000 Bond Is Redeemable for $10,500

Question 78

Multiple Choice

A $10,000 bond is redeemable for $10,500.The absolute value of the last two write-down values (the last two values in the Book Value Adjustment column) are Pn-1 = 64.50 and Pn = 67.08 respectively.What is the last value in the Interest on the Book Value column,In?


A) $422.68
B) $417.32
C) $402.68
D) $397.32

Correct Answer:

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