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XYZ Co. is planning to issue stripped bonds with a face value of $100 and maturity...

XYZ Co. is planning to issue stripped bonds with a face value of $100 and maturity of 10 years. What is the price of each stripped bond if the yield to maturity on similar bonds is 5.5% compounded semi-annually?

Select one:

a. $58.13

b. $58.54

c. $76.24

d. $94.72

e. $100.00

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