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? a. $1,136.27 b. $876.11 c. $887.00 d. $885.15

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? a. $1,136.27 b. $876.11 c. $887.00 d. $885.15

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?
а.
$1,136.27
b. $876.11
c. $887.00
d. $885.15

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