A bond pays a coupon of $80 annually. Current bonds with the same rating are have a 7% interest rate. The value of this bond would be 1. greater than 1000 2. less than 1000 3. 1000 exactly

A bond pays a coupon of $80 annually. Current bonds with the same rating are have a 7% interest rate. The value of this bond would be

1. greater than 1000   2. less than 1000   3. 1000 exactly

Answer
greater than 1000