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 10%.
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 10%. The intrinsic value of the bond today will be ______ if the coupon rate is 7%.
A.) $712.99
B.) $620.92
C.) $1,123.01
D.) $886.28
E.) $1,000.00
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TExES Business And Finance Secrets Study Guide
Authors: TExES Exam Secrets Test Prep Team
1st Edition
1516706862, 978-1516706860
