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R&L Repair Services Issued Bonds with a Face Value of $10,000,000

Question 14

Multiple Choice

R&L Repair Services issued bonds with a face value of $10,000,000 and a coupon rate of 6% paid semiannually for 6 years. The market rate of interest is 5%.
How much is the market value of the bond?


A) $ 2,128,180
B) $ 8,410,310
C) $10,512,888
D) $ 6,581,880

Correct Answer:

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