[Solved] An Investor Purchases a 20-Year,$1,000 Par Value Bond That Pays

Question 52
Multiple Choice

An investor purchases a 20-year,$1,000 par value bond that pays semiannual interest of $40.If the semiannual market rate of interest is 5%,what is the current market value of the bond?

A)$ 828.
B)$1,686.
C)$1,000.
D)$ 893.

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