Two Years Ago Bonds Were Issued with 10 Years Until

question 17

Multiple Choice

Two years ago bonds were issued with 10 years until maturity, selling at par, and a 7 percent coupon.If interest rates for that grade of bond are currently 8.25 percent, what will be the market price of these bonds?

• A)$917.06
• B)$928.84
• C)$987.50
• D)$1,000.00 Using the BAII Plus calculator:

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Definitions:

Mean Value

The average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Category

A class or division of people or things regarded as having particular shared characteristics.

Mode

The value that appears most frequently in a set of data.

Median

The middle value in a sorted list of numbers, dividing the dataset into two halves.