Question
A 10 year bond issued today by Carris, Inc. has a coupon rate of 10%, a required return of 6% and a face value of
A 10 year bond issued today by Carris, Inc. has a coupon rate of 10%, a required return of 6% and a face value of $1000. The bond will be sold 5 years from now when interest rates will be 8%. What is the ending value of the bond when it is sold (to the nearest dollar)?
| $1,080 | ||
| $1,064 | ||
| $1,000 | ||
| $1,375 |
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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
