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What the selling price of the bond will be

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Problem 1: A $1,000, two-year bond is issued on January 1, 2020 with a couponrate of 8%. The market demands a yield rate of 10% for investments of similar risk. Interest will be paid on June 30th and December 31st each year. On January 1, 2020, the selling price of the bond will be

a) $1,000.
b) less than $1,000.
c) greater than $1,000.
d) cannot be determined from the information.

Reference no: EM132828212

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