Question
A two-year coupon bond with a 5% coupon rate is valued at $916.79 and another two-year coupon bond with a 10% coupon rate is valued
A two-year coupon bond with a 5% coupon rate is valued at $916.79 and another two-year coupon bond with a 10% coupon rate is valued at $1,007.13. Given this information, what will be the value of a two-year bond with an 8% coupon rate? The par values of all three bonds are $1,000.
| A. | $1,076.95 | |
| B. | $1,039.63 | |
| C. | $970.99 | |
| D. | $1,004.36 | |
| E. | $937.89 |
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Multinational Business Finance
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
15th Global Edition
129227008X, 9781292270081
