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A company is about to issue a zero-coupon bond. The bond is to be redeemed in 6 years' time at par and investors are likely

A company is about to issue a zero-coupon bond. The bond is to be redeemed in 6 years' time at par and investors are likely to require a 7% return from the bond. What is a fair price for the bond, to the nearest pound?

A. 59

B. 71

C. 56

D. 48

E. 67

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