ressor Kostovetsky purchases a 10-year 4%-coupon Treasury bond for its current market price of $937.23 and then holds it until maturity. What is his Net Present Value (NPV) from this investment? A. $0 B. $62.77 C. $462.77 D. $4062.77

ressor Kostovetsky purchases a 10-year 4%-coupon Treasury bond for its current market price of $937.23 and then holds it until maturity. What is his Net Present Value (NPV) from this investment? A. $0 B. $62.77 C. $462.77 D. $4062.77

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Professor Kostovetsky purchases a 10-year 4%-coupon Treasury bond for its current market price of
$937.23 and then holds it until maturity. What is his Net Present Value (NPV) from this investment?
A. $0
B. $62.77
C. $462.77
D. $4062.77

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