What would be the current value of the bond


A corporate bond bearing a 10% coupon rate will mature in 10 years. If the current market rate is 12%, what would be the current value of the bond (assume semiannual interest payments)?

a) $604.50
b) $1,135.50
c) $915.50
d) $885.50

Solution Preview :

Prepared by a verified Expert
Finance Basics: What would be the current value of the bond
Reference No:- TGS0674986

Now Priced at $5 (50% Discount)

Recommended (94%)

Rated (4.6/5)