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15-02-2024
Business

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An 8-year, 10% bond with a face value of $1,000 has a semi-annual coupon. The price of the bond is such that the bond yields an 8% compounded semi-annually. Given that the discount on the bond is $250.

What is the price of the bond?
A) $750
B) $800
C) $850
D) $900

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