Question
Xanth has issued a bond with 10 years to maturity. The bond pays a $180 annual coupon. Similar bonds yield 18% per year at present.
Xanth has issued a bond with 10 years to maturity. The bond pays a $180 annual coupon. Similar bonds yield 18% per year at present. What is the approximate present value of the $1000 face value to be paid at maturity & the present value of the coupons (interest) payments?
| $191 & $809 | ||
| $1,000 & $1000 | ||
| $500 & $500 | ||
| $463 & $537 | ||
| $910.45 & $89.55 |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
