What Is the Value of a Bond That Has a Face

question 53

Multiple Choice

What is the value of a bond that has a face value of $1,000,a coupon rate of $80 (annually) ,and matures in 11 years? Assume a required rate of return of 11%,and round your answer to the nearest $10.

• A)$320.66
• B)$1,011.00
• C)$813.80
• D)$790.79

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Definitions:

Observed Characteristics

Traits or features of an individual or entity that can be directly measured or perceived, often used in statistical analysis.

Risk Assessment

Involves identifying, analyzing, and evaluating uncertainty in investment decisions.

Credit Analysis

The process of evaluating an individual's or entity's ability to repay a loan or meet financial obligations.