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The First Trust of Bowmanville is offering a single coupon payment, due 12 months from today, of $8,700.00, taken from a fully-insured, five year term,

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The First Trust of Bowmanville is offering a single coupon payment, due 12 months from today, of $8,700.00, taken from a fully-insured, five year term, constant payment mortgage. If you want to buy this coupon and see the one-month riskless market rate of interest is 45 basis points, the twelve-month riskdess market rate of interest is 1.78% and the eighteen month riskless market rate of interest is 2.10%. you would offer First Trust approximately what amount today? $7,620.36 $5.321.11 $8,606 80 $7.991 11 none of the above

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