A $5000 Bond with Interest at J₂ = 10% Is

question 59

Multiple Choice

A $5000 bond with interest at j₂ = 10% is redeemable at 98 in 10 years.It is purchased at a pricing yield rate of j₂ = x% and the resultant price is $5080.Using the method of averages,determine x

• A)10.38%
• B)9.66%
• C)5.19%
• D)4.83%

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