A 10-year bond paying 8 annual coupons pays 1000 at


A 10-year bond paying 8% annual coupons pays $1000 at maturity. If the required rate of return on the bond is 7%, then today the bond will sell (rounded to the nearest cent) for

 

  • $1000.00
  • $1210.45
  • $987.48
  • $1070.24
  • None of the above

 

 

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Finance Basics: A 10-year bond paying 8 annual coupons pays 1000 at
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