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A 10,000 par value bond with coupons at 8%, convertible semiannually, is being sold three years and four months before the bond matures. The purchase

A 10,000 par value bond with coupons at 8%, convertible semiannually, is being sold three years and four months before the bond matures. The purchase will yield 6% convertible semiannually to the buyer. The price at the most recent coupon date, immediately after the coupon payment, was 5,640.

Calculate the market (quoted) price of the bond.

Possible Answers

A

5,486

B

5,520

C

5,540

D

5,560

E

5,696

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