Qian Papa invests in a corporate bond, whose market price is 900 yuan, par value is 1000 yuan, coupon rate is 8%, interest is payed once a year and there are 10 years before maturity. Qian Papa wants to know what is the rate of return of this bond?
A: 9.49956%
B: 9.59956%
C: 9.69956%
D: 9.69656%
A: 9.49956%
B: 9.59956%
C: 9.69956%
D: 9.69656%
举一反三
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- The duration of a ten - year, 10 percent coupon bond when the interest rate is 10 percent is 6.76 years. What happens to the price of the bond if the interest rate falls to 8 percent?
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- 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.