Wednesday, 7 August 2013

A bond has a 5% coupon and has 8 years to maturity. If current bonds yield 6%, what is it worth? 1. 881 2. 938 3. 1000 4. 1091 5. 1139

A bond has a 5% coupon and has 8 years to maturity. If current bonds yield 6%, what is it worth?
 
         
1.
881
 

2.
938
 

3.
1000
 

4.
1091
 

5.
1139
 

Answer
938

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