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What Is the Current Price of an Existing Debenture with a Face

Question 56

Multiple Choice

What is the current price of an existing debenture with a face value of $1000 that pays a fixed coupon of 8.4% per annum,compounded annually,and maturing in five years? Current yields in the market are 6.6% per annum.


A) $941.65
B) $999.96
C) $1016.26
D) $1049.54

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