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Converse Judson Industries Has 9-Year, $1,000 Face Value Bonds Outstanding

Question 21

Multiple Choice

Converse Judson Industries has 9-year, $1,000 face value bonds outstanding that pay a 7 percent semiannual coupon. If your nominal annual required rate of return is 10 percent with semiannual compounding, what is the current yield on the bonds?


A) 8.49%
B) 8.59%
C) 8.71%
D) 8.84%
E) 8.90%

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