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If a Bond Offers $1,000 in Interest Payments at the End

Question 90

Multiple Choice

If a bond offers $1,000 in interest payments at the end of each of next 5 years and a repayment of $10,000 also at the end of the 5 years and the current discount rate is 3 percent, what is the present value of the bond?


A) $13,205
B) $10,857
C) $12,569
D) $4,580

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