What is floating rate bond is worth in given year


A 7 percent, 20 year, $1,000 par value floating rate bond is purchased in 2000. By the year 2010, rates on bonds of similar risk are up to 9 percent. What is the bond worth in 2010?

a-less than $720
b-between $720 and $820
c-between $820 and $920
d-more than $920

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Finance Basics: What is floating rate bond is worth in given year
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