A bond is issued at a price of $1000 and pays a interest of $40 per year for the next 10 years. If the interest rate in the market is 5.5% and the bond is redeemed for a price of $1000 then what is the price of the bond today Question 3 options: $885 $985 $1085 $1115
A bond is issued at a price of $1000 and pays a interest of $40 per year for the next 10 years. If the interest rate in the market is 5.5% and the bond is redeemed for a price of $1000 then what is the price of the bond today Question 3 options: $885 $985 $1085 $1115
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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Transcribed Image Text:A bond is issued at a price of $1000 and pays a interest of $40 per year for the next 10 years. If the interest rate in the market is 5.5% and
the bond is redeemed for a price of $1000 then what is the price of the bond today Question 3 options: $885 $985 $1085 $1115
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