Multiple Choice
A three-year bond with a principal amount of $5,000,a 3% coupon rate paid annually,one year from maturity will sell for what price (rounded to the nearest dollar) in the bond market if interest rates are 5%?
A) $4,762.
B) $4,905.
C) $5,000.
D) $5,150.
E) $5,408.
Correct Answer:
Verified
Correct Answer:
Verified
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