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What is the current market value of bond

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Problem 1) An investor purchases a 5-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. $923
B. $968
C. $1,000
D. $1,309

Reference no: EM132685347

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