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Miller Motorworks Has a $1,000 Par Value,8% Annual Coupon Bond

Question 85

Multiple Choice

Miller Motorworks has a $1,000 par value,8% annual coupon bond with interest payable semiannually with a remaining term of 15 years.The annual market yield on similar bonds is 6%.What is the bond selling for today? (Round to the nearest whole dollar. )


A) $1,196
B) $1,042
C) $1,000
D) $946

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