A Bond Will Pay $50 in Interest at the End

question 30

Multiple Choice

A bond will pay $50 in interest at the end of each of the next four years, plus the principal of $1,000 at the end of the fourth year. If the required yield-to-maturity is 6% and the present price is $980, the bond's NPV is

• A) -$41.
• B) +$41.
• C) -$15.
• D) -$33.

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