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A 15-Year Bond, Purchased Five Years Ago, Has a $1,000

Question 73

Multiple Choice

A 15-year bond, purchased five years ago, has a $1,000 par value bond, a 10 percent coupon, and a yield to maturity of 12 percent. Interest is paid annually. The bond's price is


A) $864.
B) $887.
C) $1152.
D) $1123.
E) $1253.

Correct Answer:

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