A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%). Assume one coupon payment per year. If similar bonds are currently yielding 9.413%, what is the market value of the bond? Select one: O A. $877.11 O B. $910.94 O C. $1,100.78 O D. None of these are correct

A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%). Assume one coupon payment per year. If similar bonds are currently yielding 9.413%, what is the market value of the bond? Select one: O A. $877.11 O B. $910.94 O C. $1,100.78 O D. None of these are correct

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%).
Assume one coupon payment per year. If similar bonds are currently yielding 9.413%, what is
the market value of the bond?
Select one:
O A. $877.11
O B. $910.94
O C. $1,100.78
O D. None of these are correct

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