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What is the price today of a bond

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Reference no: EM132996010

Questions -

a) What is the price today of a bond that pays no coupons has a face value of $1,000 and matures in 9 years? Market rate of return is 10.8%. Assume annual compounding.

a) $902.53

b) $ 357.19

c) $397.32

d) $492.68

e) $556.25

b) XYZ Corp. issues a 14 year semi-annual coupon bond that has a $1,000 face value. The bond is priced today at $1077 and the market rate on similar bonds is 10%. How much should bond investors receive as interest every year assuming any interest is not reinvested?

a) $149.58

b) $110.34

c) $192.16

d) $198.49

e) $91.25

Reference no: EM132996010

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