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A company previously issued 5% bonds with semi-annual payments (and a face value of $1,000). Since then, interest rates have risen (gone up) substantially. Which of the following is the most likely current price for the bonds? OA. $894.50 OB. $1,129.27 OC. All of these are equally likely. O D. $1,000.00

A company previously issued 5% bonds with semi-annual payments (and a face value of $1,000). Since then, interest rates have risen (gone up) substantially. Which of the following is the most likely current price for the bonds? OA. $894.50 OB. $1,129.27 OC. All of these are equally likely. O D. $1,000.00

Essentials Of Investments
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 company previously issued 5% bonds with semi-annual payments (and a face value of $1,000). Since then, interest rates have risen (gone up) substantially. Which of the following is the most likely current price for the bonds? OA. $894.50 B. $1,129.27 OC. All of these are equally likely. O D. $1,000.00
Transcribed Image Text:A company previously issued 5% bonds with semi-annual payments (and a face value of $1,000). Since then, interest rates have risen (gone up) substantially. Which of the following is the most likely current price for the bonds? OA. $894.50 B. $1,129.27 OC. All of these are equally likely. O D. $1,000.00
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