The bond has an annual coupon rate of 5%, a face value of $1,000, a maturity of 12  years, and a yield to maturity of 6%. What is the market price of the bond? A. 916.2 B. 1,000.0 C. 1,088.6

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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The bond has an annual coupon rate of 5%, a face value of $1,000, a maturity of 12 
years, and a yield to maturity of 6%. What is the market price of the bond?
A. 916.2
B. 1,000.0
C. 1,088.6

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