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Consider a Bond Which Pays 8% Semiannually and Has 8

Question 24

Multiple Choice

Consider a bond which pays 8% semiannually and has 8 years to maturity. The market requires an interest rate of 10% on bonds of this risk. What is this bond's price?


A) $530.58
B) $891.62
C) $893.30
D) $3129.17
E) None of these.

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