30-year, $1,000 par value bond has an 8% annual payment coupon. The bond currently sells for $852.48. If t naturity remains at its current rate, what will the price be 6 years from now? . $855.74 . $857.02 $858.44 . $859.99
30-year, $1,000 par value bond has an 8% annual payment coupon. The bond currently sells for $852.48. If t naturity remains at its current rate, what will the price be 6 years from now? . $855.74 . $857.02 $858.44 . $859.99
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![A 30-year, $1,000 par value bond has an 8% annual payment coupon. The bond currently sells for $852.48. If the yield to
maturity remains at its current rate, what will the price be 6 years from now?
a. $855.74
b. $857.02
c. $858.44
d. $859.99
e. $863.55](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7cd338bb-3738-4289-b54a-3b7b8416cf99%2F519c47e8-4321-443a-a9f5-90cd1888a09e%2Fsq73f09_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A 30-year, $1,000 par value bond has an 8% annual payment coupon. The bond currently sells for $852.48. If the yield to
maturity remains at its current rate, what will the price be 6 years from now?
a. $855.74
b. $857.02
c. $858.44
d. $859.99
e. $863.55
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