A 30 year bond has a face value of $1,000 and a coupon rate of 10% per year with quarterly interest payments. Exactly when there are 5 years to maturity (and 20 interest payments left), the market rate for bonds with the same investment grade and maturity are sold at a market rate of 8% per year. How much is the price of one share of the subject bond under current market condition? O 876 O 1,124 O 1,082 O 924

A 30 year bond has a face value of $1,000 and a coupon rate of 10% per year with quarterly interest payments. Exactly when there are 5 years to maturity (and 20 interest payments left), the market rate for bonds with the same investment grade and maturity are sold at a market rate of 8% per year. How much is the price of one share of the subject bond under current market condition? O 876 O 1,124 O 1,082 O 924

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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