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An investor purchases a 5-year, $1,000 par value bond that pays semiannual interest of $50....

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Accounting

An investor purchases a 5-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of interest is 6%, what is the current market value of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Multiple Choice

  • $926.

  • $981.

  • $1,000.

  • $1,368.

Answer & Explanation Solved by verified expert
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