You are considering buying bonds in ACBB, Inc The bonds have a par value of $1,000 and mature in 19 years The annual coupon rate is 13 0 with quarterly coupon payments You would expect a quoted annual return of 9 0 if you purchased these bonds What is the value of the bonds to you a $1153 23 b $138...

d 136252 Value of the bond Inte ...

You are considering buying bonds in ACBB, Inc. The bonds have a par value of $1,000 and

Question:

You are considering buying bonds in ACBB, Inc. The bonds have a of $1,000 and mature in 19 years. The annual rate is 13.0% with quarterly payments. You would expect a quoted annual return of 9.0% if you purchased these bonds. What is the value of the bonds to you?
a. $1153.23
b. $1389.03
c. $719.38
d. $1362.52
e. $4897.11
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...