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Consider a One-Year Maturity, $100,000 Face Value Bond That Pays

Question 39

Multiple Choice

Consider a one-year maturity, $100,000 face value bond that pays a 6 percent fixed coupon annually. What is the price of the bond if market interest rates are 5 percent?


A) $100,952.38.
B) $101,238.10.
C) $100,963.71.
D) $100,000.00.
E) $101,108.27.

Correct Answer:

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