On February 26, 2009, C & B Ltd. issued 10 year bonds with an 8.5% coupon rate. At what price did $1,000 face value bonds trade for on September 9, 2014 if the prevailing market rate was 5.8% compounded semiannually? Multiple Choice $1,115.75 $1,062.00 $1,065.37 $1,071.29 $1,108.01

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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On February 26, 2009, C & B Ltd. issued 10 year bonds with an 8.5% coupon rate. At what price did $1,000 face value bonds trade for on September 9, 2014 if the prevailing market rate was 5.8% compounded semiannually?

Multiple Choice

  • $1,115.75
  • $1,062.00
  • $1,065.37
  • $1,071.29
  • $1,108.01
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