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Variance Logistics Wants to Issue 20-Year, Zero-Coupon Bonds That Yield

Question 12

Multiple Choice

Variance Logistics wants to issue 20-year, zero-coupon bonds that yield 6.2 percent.What price should it charge for these bonds if the face value is $1,000? Assume semiannual compounding.


A) $ 288.15
B) $ 294.89
C) $ 543.03
D) $ 562.03
E) $ 326.45

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