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A $12-$year annual payment corporate bond has a market price of $$925.$ It pays annual interest of $$60$ and its required rate of return is $7$ percent. Is the bond correctly priced, overpriced, or underpriced? If it is overpriced or underpriced, then list by how much.

Multiple Choice

correctly priced

overpriced by $$7\mathrm{.}29$

underpriced by $$7\mathrm{.}29$

overpriced by $$4\mathrm{.}43$

underpriced by $$4\mathrm{.}43$

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$2$ of $10$

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