Mature in 7 years, have a face value of $1,000, and make an annual coupon interest payment of $60. The market requires an interest rate of 8% on these bonds. What is the current market price of the bond? OA. $940.29 OB. $885.07 OC. $895.87 O D. $907.54

Mature in 7 years, have a face value of $1,000, and make an annual coupon interest payment of $60. The market requires an interest rate of 8% on these bonds. What is the current market price of the bond? OA. $940.29 OB. $885.07 OC. $895.87 O D. $907.54

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

Walmart's bonds mature in 7 years, have a face value of $1,000, and make an annual coupon interest payment of $60. The market requires an interest rate of 8% on these bonds.
What is the current market price of the bond?
OA. $940.29
OB. $885.07
O C. $895.87
O D. $907.54

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