A Company Issues a Ten-Year $1,000 Face Value Bond at Par

question 6

Multiple Choice

A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.1% paid semiannually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.1%. What is the new price of the bond?

• A) $883.91
• B) $1060.69
• C) $1237.47
• D) $1,000.00

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