If the Market Rate of Interest Is 8%, the Price

question 84

Multiple Choice

If the market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of $250,000 will be

• A) Equal to $250,000
• B) Greater than $250,000
• C) Less than $250,000
• D) Greater than or less than $250,000, depending on the maturity date of the bonds

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