A 12 coupon rate bond makes semi-annual interest rate


Question: A 12% coupon rate bond makes semi-annual interest rate payments. Par value is $1,000. The bond matures in 10 years. The required rate of return is 8%. What is the current price.

a. $1,000.00

b. $1,063.00

c. $1,125.00

d. $1,271.81

e. none of the above

Solution Preview :

Prepared by a verified Expert
Finance Basics: A 12 coupon rate bond makes semi-annual interest rate
Reference No:- TGS02237501

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)