A Coupon Bond That Pays Interest Semi-Annually Has a Par

question 99

Multiple Choice

A coupon bond that pays interest semi-annually has a par value of $1,000,matures in 5 years,and has a yield to maturity of 10%.The intrinsic value of the bond today will be __________ if the coupon rate is 8%.

• A)$922.78
• B)$924.16
• C)$1,075.80
• D)$1,077.20
• E)none of the above

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Definitions:

Anxiety

Anxiety is a psychological state characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure.

Procedural Self

An aspect of self-concept based on patterns of behavior that are integrated into a coherent self-identity through repeated actions and experiences.

Conscious

The state of being awake and aware of one's surroundings, thoughts, and experiences.

Unconscious

A part of the mind that contains thoughts, memories, and desires that are not within current conscious awareness but can influence behaviors and emotions.