Multiple Choice
Four years after it was first issued at 6% compounded semi-annually, a 25-year, $10,000 strip bond was sold on the bond market at a price that would provide the purchaser with a yield rate of 4.8% compounded semi-annually. What was the selling price at that time?
A) $2,281
B) $2,667
C) $2,890
D) $3,693
E) $3,736
Correct Answer:
Verified
Correct Answer:
Verified
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