MI Has a $1,000 Par Value, 30-Year Bond Outstanding That

question 8

Multiple Choice

MI has a $1,000 par value, 30-year bond outstanding that was issued 20 years ago at an annual coupon rate of 10%, paid semiannually. Market interest rates on similar bonds are 7%. Calculate the bond's price.

• A) $956.42
• B) $1,000.00
• C) $1,168.31
• D) $1,213.19

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