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10) How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity if the interest rate

10) How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity if the interest rate is 12%? (A) $927.90 (B) $981.40 (C) $1,000.00 (D) $1,075.82

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