Question
3.Your financial advisor recommends you invest in a 25-year bond with a face value of $1,000 and an annual coupon of 10 percent. If current
3.Your financial advisor recommends you invest in a 25-year bond with a face value of $1,000 and an annual coupon of 10 percent. If current yield to maturity is 10 percent per year, what is the value of this bond?
| A. | $1,000 | |
| B. | $2,500 | |
| C. | $25,000 | |
| D. | $250,000 |
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Capital Budgeting
Authors: Pamela P. Peterson
1st Edition
0471218332, 9780471218333
