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Looking at The Wall Street Journal you observe that the settlement price on a hypothetical 15-year, semiannual payment, 6% coupon bond is 81-21. If the bond has a $1,000 par value, what is the implied Treasury bond rate?

a)8.14%
b)8.79%
c)7.00%
d)8.38%
e)6.19%

 

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