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Consider a $1,000 and 3-year maturity bond with a coupon rate of 6%. The bond pays coupon once a year. Assume the market interest rate
Consider a $1,000 and 3-year maturity bond with a coupon rate of 6%. The bond pays coupon once a year. Assume the market interest rate is 7%. How much would you be willing to pay for this bond? A. $ 1,000 B. $ 1,100 C. $ 1,050 D. it will have to depend on the return rate for reinvesting the coupons
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