Question
Consider a bond with a par value of 1,000 paying a coupon rate of 7% per year semiannually when the market interest rate is only
Consider a bond with a par value of 1,000 paying a coupon rate of 7% per year semiannually when the market interest rate is only 3% per half year. The bond has 4 years until maturity. What is the bond's price today?
| A. | $1,035.10 | |
| B. | $969.43 | |
| C. | $1,031.15 | |
| D. | $965.63 | |
| E. | $1,000.00 |
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
