Consider a Bond That Promises to Make Coupon Payments of $100

question 22

Multiple Choice

Consider a bond that promises to make coupon payments of $100 each year for three years (beginning in one year's time) and also repays the face value of $2000 at the end of the third year. If the market interest rate is 6 percent, what is the present value of this bond?

• A)$1854.67
• B)$1763.22
• C)$283.02
• D)$1946.53
• E)$267.30

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