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A ten-year 5% bond with semiannual coupons is purchased to yield 6% compounded semiannually. The...

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Finance

A ten-year 5% bond with semiannual coupons is purchased to yield 6% compounded semiannually.

The par value and redemption value are both $1,000. What is the book value of the bond six years after issue of the bond?

A. Less than $960

B. At least $960, but less than $965

C. At least $965, but less than $970

D. At least $970, but less than $975

E. At least $975

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