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A bond has the following information. *Face of the bond = $1,000 *Effective Rate = 4% * Coupon Rate=3% Maturity date 5 years from now;
A bond has the following information. *Face of the bond = $1,000 *Effective Rate = 4% * Coupon Rate=3% Maturity date 5 years from now; interest is paid semi-annually. What price should the bond be trading (round to the nearest whole number)? A) An amount greater than $1,000 B An amount less than $1,000 $3,000 D) $1,000 E It cannot be determined from the information provided
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