A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end of each of the 8 years.what should be the maximum purchase price in $ for this bond if MARR = 8 % per year ? Select one: O a. 2,230 O b. 1,850 O c. 2,000 O d. 1,670 O e. 1,487

A bond has a face value of 2,000 $ is redeemable in 8 years, and pays interest of 200 $ at the end of each of the 8 years.what should be the maximum purchase price in $ for this bond if MARR = 8 % per year ? Select one: O a. 2,230 O b. 1,850 O c. 2,000 O d. 1,670 O e. 1,487

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A bond has a face value of 2,000 $ is redeemable in 8 years , and pays interest of 200 $ at the end of each of
the 8 years. what should be the maximum purchase price in $ for this bond if MARR = 8 % per year ?
Select one:
O a. 2,230
O b. 1,850
O c. 2,000
O d. 1,670
O e. 1,487

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