A 7 Percent Coupon Bond Has a Face Value of $1,000

question 9

Multiple Choice

A 7 percent coupon bond has a face value of $1,000 and pays interest annually. The current yield is 7.3 percent. What is the current price of this bond?

• A)$958.90
• B)$978.41
• C)$1,068.00
• D)$1,029.41
• E)$1,104.00

---

Definitions:

Bedrock

The solid layer of rock beneath the soil and subsoil, acting as the foundation for the Earth's surface.

Climate

The long-term pattern of weather in a particular area, defined by variables such as temperature, precipitation, and wind.

Sea Level

The average height of the ocean’s surface between high and low tide, used as a reference point for measuring the elevation or depth of geographical locations.

Glaciers Evidence

Indicators or markers left by glacier movements, such as moraines, striations, and changes in landscape topography.