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Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A security has a maturity value of $ 100,000; its coupon rate is 4% and its yield is required to be 8%. What would a buyer pay for this security if the security is due 5 years from now?

category

economics

options

  1. $ 100,000
  2. $ 75,000
  3. $ 84,028.82
  4. $95,000
  5. $87,000
  6. $ 90,000
  7. $78,500
  8. $80,000
  9. $70,000
  10. $92,500

src

stemez-Economics

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Official source

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