A 20-Year Bond Pays 9% on a Face Value of $1,000

question 74

Multiple Choice

A 20-year bond pays 9% on a face value of $1,000. If similar bonds are currently yielding 6%, what is the market value of the bond? Use annual analysis.

• A) Under $1,300
• B) Exactly $1,000
• C) Over $1,300
• D) Not enough information is given to tell.

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