Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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7. Imperial Oil decides to raise $500 million by issuing 7-year semi-annual bonds that pay
interest of 3.5% per year. If the face value is $1,000 and the current yield is 4%, what is the
market price of the bond?
A. $924.15
B. $969.73
C. $987.13
D. $992.35
E. $1,032.76
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Transcribed Image Text:7. Imperial Oil decides to raise $500 million by issuing 7-year semi-annual bonds that pay interest of 3.5% per year. If the face value is $1,000 and the current yield is 4%, what is the market price of the bond? A. $924.15 B. $969.73 C. $987.13 D. $992.35 E. $1,032.76
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