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A bond issued 10 years ago had a face value of $2,000; a coupon rate of 5%; and a yield of 6% when it was sold last month in the secondary bond market. At what price did the bond sell in the secondary market? $2,220.00 $2,120.00 $1,880.00 X Incorrect $1,666.67

A bond issued 10 years ago had a face value of $2,000; a coupon rate of 5%; and a yield of 6% when it was sold last month in the secondary bond market. At what price did the bond sell in the secondary market? $2,220.00 $2,120.00 $1,880.00 X Incorrect $1,666.67

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...
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A bond issued 10 years ago had a face value of $2,000; a coupon rate of 5%; and a yield of 6% when it was sold last month in the secondary bond market. At what price did the bond sell in the secondary market? $2,220.00 $2,120.00 $1,880.00 X Incorrect $1,666.67
Transcribed Image Text:A bond issued 10 years ago had a face value of $2,000; a coupon rate of 5%; and a yield of 6% when it was sold last month in the secondary bond market. At what price did the bond sell in the secondary market? $2,220.00 $2,120.00 $1,880.00 X Incorrect $1,666.67
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