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Bond Price: Kevin Rogers Is Interested in Buying a Five-Year

Question 15

Multiple Choice

Bond price: Kevin Rogers is interested in buying a five-year bond that pays a coupon of 10 percent on a semiannual basis. The current market rate for similar bonds is 8.8 percent. What should be the current price of this bond? (Round to the nearest dollar.)


A) $1,048
B) $965
C) $1,099
D) $982

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