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: $1,026.73.
B: $1,049.17.
C: $973.76.
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
- The value of a 10-year, 6% coupon $100 par value bond with semiannual payments, assuming an annual discount rate of 7%, is closest to
- A<br/>coupon bond that pays interest annually has a par value of $1,000,<br/>matures in seven years, and has a yield to maturity of 9.3%. The<br/>intrinsic value of the bond today will be ________ if the coupon rate<br/>is 8.5%. A: $712.99 B: $960.14 C: $1,123.01 D: $886.28 E: $1,000.00
- 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
- A<br/>coupon bond that pays interest annually is selling at a par value of<br/>$1,000, matures in five years, and has a coupon rate of 9%. The yield<br/>to maturity on this bond is ________ A: 8.0%. B: 8.3%. C: 9.0%. D: 10.0%. E: None<br/>of the options are correct.