What is the expected price of the bond

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Reference no: EM132535055

Based on the following information concerning WWS Inc.'s bonds: Par value: $1,000 Years to maturity: 10 years

Coupon rate: 8% paid semiannually

Beta: 1.2

Risk-free rate: 4%

Market risk premium: 5%

What is the expected price of the bond in 4 years. You believe that the interest rate for the bond will remain the same.

Select one:

a. $923.99

b. $911.36

c. $900

d. $919.65

Reference no: EM132535055

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