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You Are Considering the Purchase of a 15-Year $1,000 Face

Question 170

Multiple Choice

You are considering the purchase of a 15-year $1,000 face value bond that pays interest of $90 annually . If you required a return of 10%, how much should you be willing to pay for this bond?


A) $873.15
B) $923.94
C) $1,000.00
D) $1,080.60
E) $1,124.65

Correct Answer:

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