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If a Bond Has a Face Value of $1,000 and a Coupon

Question 43

Multiple Choice

If a bond has a face value of $1,000 and a coupon rate of 4.25%, the bond owner will receive annual coupon payments of:

A) $425.00
B) $4.25
C) $42.50
D) a value that cannot be determined from the information provided.

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