Question
A coupon bond that pays interest annually has a par value of$1,000, matures in six years, and has a yield to maturity of 11%. The
A coupon bond that pays interest annually has a par value of$1,000, matures in six
years, and has a yield to maturity of 11%. The intrinsic value ofthe bond today will be
________ if the coupon rate is 7.5%.
A) $886.28
B) $851.93
C) $1,123.01
D) $1,000.00
E) $712.99
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
