Robin and Christopher Bird want to purchase an intermediate term bond. How much should the Birds pay
Question:
Robin and Christopher Bird want to purchase an intermediate term bond. How much should the Birds pay for a bond ($1,000 par value) with a 2 percent annual coupon that matures in five years if comparable bonds are yielding 3 percent?
A. $948.15.
B. $954.20.
C. $962.83.
D. $1,000.00.
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The correct answer is C 96283 Heres why The bonds current market value will be lower than its face v...View the full answer
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Related Book For 
Essentials Of Personal Financial Planning
ISBN: 9781945498237
1st Edition
Authors: Susan M. Tillery, Thomas N. Tillery
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