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Brooks Books’ bonds have 13 years remaining to maturity.  Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent; and the yield to maturity is 7.5 percent.  What is the bond’s current market price?   a. $1,000.00   b. $980.72   c. $1,040.63   d. $650.07   e. $1,080.00

Brooks Books’ bonds have 13 years remaining to maturity.  Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent; and the yield to maturity is 7.5 percent.  What is the bond’s current market price?   a. $1,000.00   b. $980.72   c. $1,040.63   d. $650.07   e. $1,080.00

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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  1. Brooks Books’ bonds have 13 years remaining to maturity.  Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8 percent; and the yield to maturity is 7.5 percent.  What is the bond’s current market price?
      a.
    $1,000.00
      b.
    $980.72
      c.
    $1,040.63
      d.
    $650.07
      e.
    $1,080.00
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