Consider a Bond with a Face Value of $10 000,a

question 91

Multiple Choice

Consider a bond with a face value of $10 000,a three-year term and a coupon payment of 6% made at the end of each year.The face value of the bond is repaid at the end of the term.Which of the following equations will correctly calculate the present value of the bond?

• A)PV = + +
• B)PV = + +
• C)PV = + +
• D)PV = + +
• E)PV = + +

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