Consider a Bond Which Pays 7% Semiannually and Has 8

question 38

Multiple Choice

Consider a bond which pays 7% semiannually and has 8 years to maturity.The market requires an interest rate of 8% on bonds of this risk.What is this bond's price?

• A)$942.50
• B)$911.52
• C)$941.74
• D)$1,064.81
• E)None of the above