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What price is the bond trading for now

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Reference no: EM132819891

Problem 1: Consider a $1000 bond with five-years left and a 3% coupon rate and semiannual coupons. Suppose you are told that its yield to maturity has increased to 3.0% (APR). What price is the bond trading for now?

Select one:

a. $723
b. $786
c. $945
d. $1,000
e. $1,007

Reference no: EM132819891

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