How much should you be willing to pay for this bond

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Reference no: EM133008616

Question - You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months (semiannual). If your nominal annual required rate of return is 10 percent with semiannual payments, how much should you be willing to pay for this bond?

A. $826.31

B. $1,086.15

C. $957.50

D. $1,431.49

E. $1,124.62

Reference no: EM133008616

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