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16. A financial analyst observes a 3 year, 11% semi-annual bond which has a face value of $2,000. The analyst believes that the yield-to-maturity on

16. A financial analyst observes a 3 year, 11% semi-annual bond which has a face value of $2,000.

The analyst believes that the yield-to-maturity on the bond should be 15.00% annually. Based

on this, what should be the value of the bond?

a. Value of Bond is $779.60.

b. Value of Bond is $587.60.

c. Value of Bond is $1,812.25.

d. Value of Bond is $30,000.00.

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