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1. a A bond dealer quotes a bid price of 100.1 and an ask price of 100.2 Assuming a par value of $1,000, the quotes

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1. a A bond dealer quotes a bid price of 100.1 and an ask price of 100.2 Assuming a par value of $1,000, the quotes indicate that A. . . D. you can purchase this bond from the dealer for $1,002 and sell it to him for $1,001. You can sell this bond to the dealer for $1,002. You can buy or sell at the average of the two prices. None of the above. 2. What is the future value of $50,000 after 10 years, assuming a 8% rate of return to be compounded monthly A. $121.966.51 3. B. $110,982.01 C. $124,000.20 D $124,966.51 E. None of the above A bond that sells for more than its par value is called a ... bond. A. discount B. junk C. investment grade D. CCC-rated E. premium

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