Exhibit 18.1 Use the Information Below for the Following Problem(S)

question 82

Multiple Choice

Exhibit 18.1
Use the Information Below for the Following Problem(S)
A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually.
-Refer to Exhibit 18.1.Calculate the current price of the bond.

• A) $1579.46
• B) $918.89
• C) $789.29
• D) $1000
• E) $743.29

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Definitions:

Temperature

A measure of the average kinetic energy of the particles in a system, related to the concept of heat.

°C

Degrees Celsius, a scale and unit of measurement for temperature where 0°C is the freezing point of water and 100°C is the boiling point at sea level.

Volume

Volume is a measure of the three-dimensional space occupied by a substance or enclosed within a container, expressed in cubic units.

Temperature

Temperature is a physical quantity reflecting the thermal energy of an object or system, indicative of the degree of heat or coldness measurable by a thermometer.