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Billow Company Has Issued a 3% Bond That Is Payable

Question 22

Multiple Choice

Billow Company has issued a 3% bond that is payable in 5 years and has a face value of $100,000. The risk-adjusted market rate is 4%. Calculate the fair value of the bond.


A) $82,193
B) $13,355
C) $68,838
D) $95,548

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