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A 3-Year Bond with 10% Coupon Rate and $1000 Face

Question 20

Multiple Choice

A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payment, calculate the price of the bond.

A) $857.96
B) $951.96
C) $1000.00
D) $1051.54

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