What Is the Value of a Northern Pacific Bond with an 11

question 109

Multiple Choice

What is the value of a Northern Pacific bond with an 11 percent coupon, maturing in 15 years? Assume the market rate for this bond is 14 percent and that the interest is paid semiannually.

• A)$1,000
• B)$790.74
• C)$813.50
• D)$853.30

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Definitions:

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A French biologist, microbiologist, and chemist renowned for his discoveries of the principles of vaccination, microbial fermentation, and pasteurization.