What Must Be the Price of a $1 000 Bond

question 92

Multiple Choice

What must be the price of a $1 000 bond with a 5.8% coupon rate, annual coupons, and 30 years to maturity if YTM is 7.5% APR?

• A)$114.22
• B)$1 005.26
• C)$799.22
• D)$685.00

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Definitions:

Marginal Product

The additional output resultant from increasing one unit of a specific input, holding all other inputs constant.

Marginal Profit

The increase in profit that results from selling one additional unit of a product or service.

Technological Progress

The development and application of innovative techniques, machinery, and software to improve efficiency, productivity, and products.

Marginal Product

The extra production created by the inclusion of an additional unit of a certain input, while keeping all other inputs unchanged.