Multiple Choice
Which of the following amounts is closest to the value of a bond that pays €55 semiannually and has an effective semiannual interest rate of 5%? The face value is €1,000 and the bond matures in 3
Years.There are exactly six months before the first interest payment.
A) €888
B) €1,000
C) €1,014
D) €1,025
E) €1,055
Correct Answer:
Verified
Correct Answer:
Verified
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