A 15-Year Bond Pays 9% on a Face Value of $1,000

question 34

Multiple Choice

A 15-year bond pays 9% on a face value of $1,000. If similar bonds are currently yielding 6%, what is the market value of the bond? Use annual analysis.

• A) Over $1,000
• B) Under $1,000
• C) Over $1,200
• D) Not enough information to tell

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