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A 30-Year, $1,000 Strip Bond Was Traded for $167, Four

Question 159

Multiple Choice

A 30-year, $1,000 strip bond was traded for $167, four years after it was issued. What was the semi-annually compounded nominal rate at that time?

A) 7.13%
B) 7.00%
C) 25.07%
D) 12.52%
E) 7.27%

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