A bond pays annual coupon payments at a rate of 10%. The current yield to maturity is 12% and it matures at a par value of $1000 in exactly 20 years. What is the current market price? [Choose Closest] OA. $1170.27 O B. $850.61 O C. $746.94 OD $1639 80

A bond pays annual coupon payments at a rate of 10%. The current yield to maturity is 12% and it matures at a par value of $1000 in exactly 20 years. What is the current market price? [Choose Closest] OA. $1170.27 O B. $850.61 O C. $746.94 OD $1639 80

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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A bond pays annual coupon payments at a rate of 10%. The current yield to maturity is 12% and it matures at a par value of $1000 in exactly 20 years. What is
the current market price? [Choose Closest]
O A. $1170.27
B. $850.61
OC. $746.94
O D. $1639.80

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