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    Exam 10: Choices Involving Time
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    Assume the Interest Rate Is 5
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Assume the Interest Rate Is 5

Question 43

Question 43

Multiple Choice

Assume the interest rate is 5%.What is the present discounted value of a $1,000 bond that pays a $50 coupon each year for 10 years?


A) $989.91
B) $999.91
C) $1,000.00
D) $1,009.99

Correct Answer:

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