Jeremy Kohn Is Planning to Invest in a 10-Year Bond

question 38

Multiple Choice

Jeremy Kohn is planning to invest in a 10-year bond that pays a 12 percent coupon. The current market rate for similar bonds is 9 percent. Assume semiannual coupon payments. What is the maximum price that should be paid for this bond? (Do not round intermediate computations. Round your final answer to the nearest dollar.)

• A) $951
• B) $882
• C) $1,033
• D) $1,195

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An acceptance that something exists or is true, especially without proof.

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An individual or group blamed for wrongdoings, mistakes, or faults of others, often as a means of deflecting attention or responsibility.

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A person harmed, injured, or killed as a result of a crime, accident, or other event or action.