Question
Suppose the market interest rate is 6% now. There is a 8% coupon T-Bond (pay coupon semi- annually) with a maturity date in 5 years.
Suppose the market interest rate is 6% now. There is a 8% coupon T-Bond (pay coupon semi- annually) with a maturity date in 5 years. Which of the following statement is TRUE?
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The current price of this T-bond must be more than $1000.
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The current price of this T-bond must be less than $1000.
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The value of this T-bond on the maturity date is exactly $1040.
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Both A and C are TRUE.
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Both B and C are TRUE.
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Foundations Of Real Estate Financial Modelling
Authors: Roger Staiger
2nd Edition
1138046183, 978-1138046184
