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Bill Magness wants to purchase ERCOT bonds which are maturing in 13 years and yielding 3.57%. These ERCOT bonds have an annual coupon rate of
Bill Magness wants to purchase ERCOT bonds which are maturing in 13 years and yielding 3.57%. These ERCOT bonds have an annual coupon rate of 2.83% and a par value of $5,000. If the ERCOT bonds pay coupons twice per year, how much will Bill Magness have to spend to purchase one ERCOT bond? Note: the next coupon will be paid in exactly 6 months. Multiple Choice $4,756.39 $4,617.85 $4,894.92 $4,294.60 C O $4,479.31
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