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If the Market Rate of Interest Is 8%, the Price

Question 43

Multiple Choice

If the market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of $100,000 will be


A) Equal to $100,000
B) Greater than $100,000
C) Less than $100,000
D) Greater than or less than $100,000, depending on the maturity date of the bonds

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