Tesla's bond pays $ 70 in annual interest, with a $ 1,000 par value. The bond matures in 17 years. The market's required yield to maturity on a comparable-risk bond is 8.5%. Calculate the value of the bond. a. $1,067.62 b. $ 967.62 c. $ 867.62 d. $ 767.62

Tesla's bond pays $ 70 in annual interest, with a $ 1,000 par value. The bond matures in 17 years. The market's required yield to maturity on a comparable-risk bond is 8.5%. Calculate the value of the bond. a. $1,067.62 b. $ 967.62 c. $ 867.62 d. $ 767.62

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a. $1,067.62

b. $ 967.62

c. $ 867.62

d. $ 767.62

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