A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually. At a market discount rate of 4%, the price of this bond per 100 of par value is closest to:
A: 95.34.
B: 98.00.
C: 98.11.
A: 95.34.
B: 98.00.
C: 98.11.
举一反三
- a bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 6%, the price of this bond per 100 of par value is closest to
- Consider the following two bonds that pay interest annually: Bond Coupon Rate Time-to-Maturity A 5% 2 years B 3% 2 years At a market discount rate of 4%, the price difference between BondBper 100 of par value is closest to: A: 3.70. B: 3.77. C: 4.00.
- A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in three years. If the required rate of return on the bond is 5%, the price of the bond per 100 of par value is closest to
- If the annual market discount rate is 6%, the value of a three-year bond that has a 7% coupon rate, has a maturity (par) value of $1,000, and pays interest annually is closest to: A: $1,026.73. B: $1,049.17. C: $973.76.
- A zero-coupon bond matures in 15 years. At a market discount rate of 4.5% per year and assuming annual compounding, the price of the bond per 100 of par value is closest to: A: 51.30. B: 51.67. C: 71.62.