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A 101/2% Bond Matures in 11 Years

Question 13

Multiple Choice

A 101/2% bond matures in 11 years. Assuming the coupon is paid semiannually and the par value is $1,000, what is the value of this bond to an investor requiring a 10% rate of return?


A) $1,020.77
B) $1,032.48
C) $1,032.91
D) $583.35

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