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Suppose a Government of Canada bond promises to pay $1,000 five years from now. If the going interest rate on 5-year government bonds is 5.5%,

Suppose a Government of Canada bond promises to pay $1,000 five years from now. If the

going interest rate on 5-year government bonds is 5.5%, how much is the bond worth today?

a. $765.13

b. $803.39

c. $843.56

d. $885.74

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