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Noncallable Bonds That Mature in 10 Years Were Recently Issued

Question 59

Multiple Choice

Noncallable bonds that mature in 10 years were recently issued by Sternglass Inc.They have a par value of $1, 000 and an annual coupon of 5.5%.If the current market interest rate is 7.0%, at what price should the bonds sell?


A) $829.21
B) $850.47
C) $872.28
D) $894.65
E) $917.01

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