What Is the Value of a Bond That Has a Par

question 76

Multiple Choice

What is the value of a bond that has a par value of $1,000,a coupon rate of $80 (annually) ,and matures in 11 years? Assume a required rate of return of 11%,and round your answer to the nearest $10.

• A)$320
• B)$500
• C)$810
• D)$790

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Definitions:

Appeal to Pity

A logical fallacy that attempts to win an argument by exploiting the opponent's feelings of pity or guilt rather than by logic or reason.

Disagreement

A situation where two or more parties hold differing views, opinions, or positions on a particular issue or topic.

Debate

A formal discussion on a particular topic in a public meeting or legislative assembly, in which opposing arguments are put forward.

Fallacy of Relevance

The premise is logically irrelevant, or unrelated, to the conclusion.