If You Own a $1,000 Face Value Bond with One

question 438

Multiple Choice

If you own a $1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 9 percent,what is the most you can get for your old bond?

• A)$917.43
• B)$944.95
• C)$970.87
• D)$1,000

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