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What Should the Purchase Price of a 2-Year Zero Coupon

Question 55

Multiple Choice

What should the purchase price of a 2-year zero coupon bond be if it is purchased at the beginning of year 2 and has face value of $1,000?

A) $877.54
B) $888.33
C) $883.32
D) $893.36
E) $871.80

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