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A 7 percent 20 year 1000 par value floating rate bond is

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A 7 percent, 20 year, $1,000 par value floating rate bond is purchased in 2000. By the year 2010, rates on bonds of similar risk are up to 9 percent. What is the bond worth in 2010?

a-less than $720
b-between $720 and $820
c-between $820 and $920
d-more than $920

Reference no: EM13572366

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