A firm has an issue of $1000 par value bonds with a 12 percent coupon. The issue

Question

A firm has an issue of $1000 par value bonds with a 12 percent coupon.  The issue pays interest annually and has 10 years remaining to its maturity date.  If bonds of the same risk are currently earning 8 percent, what is the price of the bond? Question 20 options: 1) $1,000.00 2) $805.21 3) $851.53 4) $1,268.40 A firm has an issue of $1000 par value bonds with a 12 percent coupon.  The issue pays interest annually and has 10 years remaining to its maturity date.  If bonds of the same risk are currently earning 8 percent, what is the price of the bond? A firm has an issue of $1000 par value bonds with a 12 percent coupon.  The issue pays interest annually and has 10 years remaining to its maturity date.  If bonds of the same risk are currently earning 8 percent, what is the price of the bond? 1) $1,000.00 2) $805.21 3) $851.53 4) $1,268.40 $1,000.00 $805.21 $851.53 $1,268.40 1) $1,000.00 2) $805.21 3) $851.53 4) $1,268.40

Explanation / Answer

$1,268.40 4) $1,268.40

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