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A Person Buys a Bond with a Face Value of $10,000

Question 36

Multiple Choice

A person buys a bond with a face value of $10,000 for $9,325.Each year until the maturity date the bond buyer receives a coupon payment of $650 from the issuer of the bond.The coupon rate on the bond is


A) 9.11 percent.
B) 6.5 percent.
C) 7.0 percent.
D) 6.75 percent.

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