Multiple Choice
A bond traded at 102½ means that:
A) The bond pays 2.5% interest.
B) The bond traded at $1,025 per $1,000 bond.
C) The market rate of interest is 2.5%.
D) The bonds were retired at $1,025 each.
E) The market rate of interest is 2 ½ % above the contract rate.
Correct Answer:
Verified
Correct Answer:
Verified
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