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problem: You have just been offered a $1,000 par value bond for $847.88. The bond has an yearly coupon rate of 8 percent & annual interest rates on equally risky new issues are ten percent. You want to know how many more interest payments you will receive, but the party selling the bond cannot remember. Can you estimate how many interest payments remain?  

(A) 14

(B) 15

(C) 20

(D) 12

Basic Finance, Finance

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  • Reference No.:- M916182

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