A Company Issues a Ten-Year Bond at Par with a Coupon

question 43

Multiple Choice

A company issues a ten-year bond at par with a coupon rate of 6% paid semi-annually.The YTM at the beginning of the third year of the bond (8 years left to maturity) is 7.8%.What is the new price of the bond?

• A)$894.35
• B)$569.65
• C)$722.06
• D)$1,000.00

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Financial benefits that apply to certain investments or accounts that are favored by tax policy.

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A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

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The formal process by which a company or individual legally declares their inability to pay their debts.