What Is the Value of a $1,000 Par Value Bond

question 123

Multiple Choice

What is the value of a $1,000 par value bond with a 12% annual coupon that will mature in 5 years if the bond is currently priced to yield 10%?

• A)$955.76
• B)$1,000.00
• C)$1,075.82
• D)$1,158.52

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Definitions:

Annual Salary

The total amount of money that an employee is paid over the course of a year for their work.

Capital Balance

Represents the amount of money that the owners of a business have invested in it or the net worth of the business.

Operations

Refers to the day-to-day activities necessary for running a business and generating value.