corporation iss milar 15-year be pect to receive $888 $828 $879 $896 $862

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
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A corporation issued a 15-year bond with a coupon rate of 7% at a price of $874.16. The corporation wants to issue a
similar 15-year bond with a coupon rate of 7%, however coupon payments will be made annually. What price should they
expect to receive from the sale of the annual-coupon bond?
O $888
O $828
O $879
O $896
O $862
Transcribed Image Text:A corporation issued a 15-year bond with a coupon rate of 7% at a price of $874.16. The corporation wants to issue a similar 15-year bond with a coupon rate of 7%, however coupon payments will be made annually. What price should they expect to receive from the sale of the annual-coupon bond? O $888 O $828 O $879 O $896 O $862
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