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A 10-year annual payment corporate bond has a market price of $1,030. It pays annual coupon rate of 10% and its required rate of return

A 10-year annual payment corporate bond has a market price of $1,030. It pays annual coupon rate of 10% and its required rate of return is 9 percent. By how much is the bond mispriced?

USE TIME VALUE TABLES WITH 3 DECIMAL PLACES

Select one:

Underpriced by $9.32

Underpriced by $34.18

Overpriced by $34.18

Underpriced by $14.18

Underpriced by $5.82

Overpriced by $14.18

Overpriced by $5.82

Overpriced by $9.32

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