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10) You are analyzing a B-rated Munipal bond available for sale in the market today. The bond has a term of two years, a coupon

10) You are analyzing a B-rated Munipal bond available for sale in the market today. The bond has a term of two years, a coupon of 4.20% paid annually and a face value of $1,000. The market's expected return for B-rated Municipal bonds is currently 5.10% Which of the following equations represents the market value of this bond?

A) PV = 5.10/(1.042) + 1,005.10/(1.042)2

B) PV = 42/(1.051) + 42/(1.051)2 + 1,000/(1.051)3

C) PV = 42/(1.051) + 1,042/(1.051)2

D) PV = 51/(1.042) + 1,051/(1.42)2

E) PV = 4.20/(1.051) + 1,04.20/(1.051)2

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