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Fernanda owns an 8%, $10,000 bond with 3 years remaining to maturity. The bond pays interest semi-annually. The yield on new 3-year issues of the

Fernanda owns an 8%, $10,000 bond with 3 years remaining to maturity. The bond pays interest semi-annually. The yield on new 3-year issues of the same quality is 6%. Fernanda does not want to sell her bond. She understands that bond interest payments are a sort of annuity and she is wondering what the present value of her bond interest payments will be over the remaining three years?

A) $1,800.00

B) $2,138.41

C) $2,166.88

D) $2,400.00

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