Devine Divots Issued a Bond a Few Years Ago That

question 90

Multiple Choice

Devine Divots issued a bond a few years ago that has a face value equal to R1,000 and pays investors R30 interest every six months.The bond has eight years remaining until maturity.If you require a 7 percent rate of return to invest in this bond, what is the maximum price you should be willing to pay to purchase the bond?

• A) R761.15
• B) R939.53
• C) R940.29
• D) R965.63
• E) R1,062.81

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