QUESTIONS 97 THROUGH 108 RELATE TO FIXED INCOME INVESTMENTS.

101. If the appropriate annual discount rate is 6%, the value of a 3-year bond that has a 7% coupon

rate, has a maturity (par) value of $1,000, and pays interest annually is closest to:

A. $973.76.

B. $1,026.73.

C. $1,049.17.

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