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If You Own a $1000 Face Value Bond with One

Question 137

Multiple Choice

If you own a $1000 face value bond with one year remaining to maturity and a 3 per cent interest rate, and new bonds are paying 14 per cent, what is the most you can get for your old bond?


A) $903.51
B) $997.19
C) $1000
D) $1140

Correct Answer:

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