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Suppose a State of California Bond Will Pay $1,000 Eight

Question 55

Multiple Choice

Suppose a State of California bond will pay $1,000 eight years from now.If the going interest rate on these 8-year bonds is 6.2%,how much is the bond worth today?


A) $537.68
B) $704.54
C) $618.02
D) $673.64
E) $741.63

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