Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 15 years to maturity, and a coupon rate of 8 percent paid annuallly. If the yield to maturity is 10 percent, what is the current price of the bond?

rev: 02_28_2019_QC_CS-161195

Multiple Choice

• 1,175.19

• $805.48

• 847.88

• 890.27

• 1,030.00