A three-year bond has an 8 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments. Question 8Select one: A. $1,057.54 B. $949.24 C. $1,000.00 D. $857.

A three-year bond has an 8 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments. Question 8Select one: A. $1,057.54 B. $949.24 C. $1,000.00 D. $857.

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 three-year bond has an 8 percent coupon rate and a $1,000 face value. If the
yield to maturity on the bond is 10 percent, calculate the price of the bond
assuming that the bond makes semiannual coupon payments.
Question 8Select one:
A.
$1,057.54
B.
$949.24
C.
$1,000.00
D.
$857.

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