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A $1,000 par value bond bearing 4% annual coupons is purchased at $887.26 to yield an...

A $1,000 par value bond bearing 4% annual coupons is purchased at $887.26 to yield an annual effective rate of 5%.

What is the amount of the write-up in value during the second year?

A.    $4.36

B.    $4.58

C.    $4.80

D.    $5.02

E. $5.22

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