Julia Just Purchased a $1,000 Par Value Bond with a 10

question 56

Multiple Choice

Julia just purchased a $1,000 par value bond with a 10 percent annual coupon rate and a life of 20 years. The bond has four years remaining until maturity, and the yield to maturity is 12 percent. How much did Julia pay for the bond?

• A) $1,063.40
• B) $1,000
• C) $939.25
• D) none of the above

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Definitions:

Elementary School

A school providing the first segment of compulsory education, typically for children from kindergarten through grades 4-6 or 4-8, depending on the system.

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A secondary school that typically comprises grades 9 through 12, or something equivalent, serving students approximately 14 to 18 years old.

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