A corporate bond has a face value of 100 a coupon rate of


A corporate bond has a face value of $100, a coupon rate of 5.5% p.a. payable quarterly, and a yield of 7.5% p.a. What is its value?

(a) $100.00

(b) $89.19

(c) $111.56

(d) $107.14

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Finance Basics: A corporate bond has a face value of 100 a coupon rate of
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