Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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Question
Suppose you want to purchase a bond with a $1,000 par value maturing in 10 years with a 12 % annual coupon interest rate, and has market interest rate of 8%.
What’s the price or
Select one:
a. $1,000
b. $1,268.4
c. $805.20
d. $851.8
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