A $1,000 Face Value Bond Currently Has a Yield to Maturity

question 77

Multiple Choice

A $1,000 face value bond currently has a yield to maturity of 7.14 percent.The bond matures in sixteen years and pays interest semiannually.The coupon rate is 6.95 percent.What is the current price of this bond?

• A)$987.42
• B)$988.57
• C)$1,001.52
• D)$982.05
• E)$1,138.63

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