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Calculate the Value of a $1,000 Bond Which Has 10

Question 107

Multiple Choice

Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 20 percent.


A) $656.82
B) $835.45
C) $845.66
D) $2,201.08

Correct Answer:

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