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Suppose a bond will pay $1,050 five years from now, and $50 at the end of each year for next five years. If the going

Suppose a bond will pay $1,050 five years from now, and $50 at the end of each year for next five years. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today?

a.

$865.31

b.

$951.40

c.

1073.76

d.

$825.25

e.

$673.65

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