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6. Two years ago ACME bonds were issued at par with 10 years until maturity and a 7% annual cou- pon. If interest rates for

6. Two years ago ACME bonds were issued at par with 10 years until maturity and a 7% annual cou- pon. If interest rates for that grade of bond are currently 6.25%, what will be the market price of these bonds?

A. $1,046.12 B. $928.84 C. $987.50 D. $1,000.00

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