A Bond Has a $10,000 Face Value, Ten Years to Maturity

question 85

Multiple Choice

A bond has a $10,000 face value, ten years to maturity, and 8% semiannual coupon payments. What would be the expected difference in this bond's price immediately before and immediately after the next coupon payment?

• A) $800
• B) $400
• C) $1200
• D) $200