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Question
Assume that you can purchase a 15-year, $1,000 face value bond which pays interest on a semiannual basis, for $1,324.23. If the market's effective annual required rate of return is 8.16 percent (or 4 percent semi-annually), how much interest does this bond pay each year?
a. $64.81
b. $56.37
c. $117.50
d. $132.19
e. $126.48
Answer
This answer is hidden. It contains 197 characters.
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