Calculate the Price of a 10-Year Bond That Has Five

question 24

Multiple Choice

Calculate the price of a 10-year bond that has five years to maturity,with face value of $100 000,and coupon interest rate of 8.9% p.a.paid semi-annually,if the required rate of return is 9.9% p.a.(simple interest) .

• A)$96 130
• B)$90 992
• C)$95 752
• D)$93 193

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