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A lender pays $ 1 0 0 , 0 0 0 for a bond that returns a single payment at the end of two years.

A lender pays $100,000 for a bond that returns a single payment at the end of two years. The annual interest rate on the bond is 5 percent. The lender will be repaid at the end of the two years.
$105,000
$110,000
more than $105,000 but less than $110,000
more than $110,000
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