What Is the Value of a Bond That Has a Par

question 96

Multiple Choice

What is the value of a bond that has a par value of $1,000,a coupon of $120 (annually) ,and matures in 10 years? Assume a required rate of return of 7.02%.

• A) $1,198.45
• B) $1,200.78
• C) $1,284.38
• D) $1,349.45

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