The principal amount to be repaid at the end of three years

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Consider a three-year $2,000 par value coupon bond that has a present value of $2,140. If the annual rate of discount is 7 percent, and the payment made at the end of each year is $140, the principal amount to be repaid at the end of three years is

A) $1,860.00. B) $2,000.00. C) $2,140.00. D) None of the preceding.

Reference no: EM13889190

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