Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and yield to maturity is12%. The bond has par value of $1,000. What is the current bond price?$885.15O $887.00O $876.11$1,136.27

We are given the following data :Years to maturity : 12 Coupon rate : 10%Yield to maturity : 12%Par…

Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and yield to maturity 12%. The bond has par value of $1,000. What is the current bond price? $885.15 $887.00 $876.11 $1,136.27

Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and yield to maturity 12%. The bond has par value of $1,000. What is the current bond price? $885.15 $887.00 $876.11 $1,136.27

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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Question

Bond X is issued by the company two years with 12 years to maturity. The coupon rate is 10% and yield to maturity is
12%. The bond has par value of $1,000. What is the current bond price?
$885.15
O $887.00
O $876.11
$1,136.27

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