Question
A coupon bond that pays interest annually has a par value of $1,000, matures in five years, and has a yield to maturity of 6%.
A coupon bond that pays interest annually has a par value of $1,000, matures in five years, and has a yield to maturity of 6%. The intrinsic value of the bond today will be ________ if the coupon rate is 7%.
options: a) $1,123.01 b) $620.92 c) $1,000.00 d) $1,042.12 e) $886.28
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
