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QUESTION 15 1. A bond with a par value of 100 pays a coupon of 12% and will be redeemed in 6 years' time at

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QUESTION 15 1. A bond with a par value of 100 pays a coupon of 12% and will be redeemed in 6 years' time at a ten percent premium to par. If investors in corporate bonds with a similar risk profile require a return of 6%, what should the current market price (to the nearest pound) of the bond be? A. 115 B. 137 C.691 D. 110 E. E136

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