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3.Your financial advisor recommends you invest in a 25-year bond with a face value of $1,000 and an annual coupon of 10 percent. If current

3.Your financial advisor recommends you invest in a 25-year bond with a face value of $1,000 and an annual coupon of 10 percent. If current yield to maturity is 10 percent per year, what is the value of this bond?

A.

$1,000
B.

$2,500
C.

$25,000
D.

$250,000

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