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A $100 000 Face Value Strip Bond Has 6 Years

Question 135

Multiple Choice

A $100 000 face value strip bond has 6 years remaining until maturity. If the current market return rate is 4% compounded semi-annually, what is the fair market value of the strip bond?


A) $78 849
B) $79 031
C) $88 797
D) $100 000
E) $126 824

Correct Answer:

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