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A 10-year annual coupon bond has a coupon rate of 5%. What is the price of the bond if the market interest rate is 5.5%?

A 10-year annual coupon bond has a coupon rate of 5%. What is the price of the bond if the market interest rate is 5.5%?

Select one:

a. $1,500

b. $962.31

c. $386.09

d. $1,000

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