Multiple Choice
A bond with a term of 20 years, a coupon rate of 8% paid at the end of every year and a face value of $1,000 was purchased November 1. By November 2nd interest rates had dropped to 6%. What is the selling price of the bond on November 2nd?
A) $12,387
B) $11,495
C) $1,229
D) $771
E) $337
Correct Answer:
Verified
Correct Answer:
Verified
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