Rick Bought a Bond When It Was Issued by Macroflex

question 10

Multiple Choice

Rick bought a bond when it was issued by Macroflex Corporation 14 years ago.The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years.Interest is paid every six months; the next interest payment is scheduled for six months from today.If the yield on similar risk investments is 14 percent, what is the current market value (price) of the bond?

• A)$841.15
• B)$1,238.28
• C)$904.67
• D)$757.26
• E)$844.45

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