Kevin Rogers Is Interested in Buying a Five-Year Bond That

question 69

Multiple Choice

Kevin Rogers is interested in buying a five-year bond that pays a coupon of 10 percent on a semiannual basis. The current market rate for similar bonds is 8.8 percent. What should be the current price of this bond? (Do not round intermediate computations. Round your final answer to the nearest dollar.)

• A) $1,048
• B) $965
• C) $1,099
• D) $982

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