When the Interest Rate Is 10 Percent, What Is the Price

question 2

Multiple Choice

When the interest rate is 10 percent, what is the price of a bond that matures in one year, has a $300 face value, and has a coupon of $20 per year?

• A)$93.24
• B)$266.11
• C)$272.72
• D)$290.90
• E)$282.64

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