An Eight-Year Corporate Bond Has a 7 Percent Coupon Rate

question 64

Multiple Choice

An eight-year corporate bond has a 7 percent coupon rate. What should be the bond's price if the required return is 6 percent and the bond pays interest semiannually?

• A)$1,062.81
• B)$1,062.10
• C)$1,053.45
• D)$1,052.99
• E)$1,049.49

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Definitions:

Non-Importation Act

Legislation passed by various American colonies in the 1760s and 1770s to protest British policies by refusing to import British goods.

War Of 1812

The War of 1812 was a military conflict fought between the United States and Britain from 1812 to 1815, primarily over British restrictions on U.S. trade and America's desire to expand its territory.

Impressment

The act of forcibly taking men into a navy or military service without notice, often practiced by the British Navy against American sailors in the early 19th century.

Macon's Bill Number 2

Legislation passed by the United States Congress in 1810, aimed at motivating Great Britain and France to stop seizing American ships during the Napoleonic Wars by restoring trade with the country that ceased its attacks on American shipping.