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- This morning, Sam bought a fifteen - year 8 . 5 % coupon bond that pays interest annually. He paid $ 1 , 0

- This morning, Sam bought a fifteen-year 8.5% coupon bond that pays interest annually. He paid $1,089 for a $1,000 bond. If the market interest rate on this type of bond declines to 5.5% tonight, how much will Sam receive for his first interest payment?A. $ 55.00B. $ 85.00C. $ 42.50D. $ 74.92E. $ 70.00

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