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Author Question: If you own a 1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate ... (Read 219 times)

londonang

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on: Jun 29, 2018
If you own a 1,000 face value bond with one year remaining to maturity and a 3 percent coupon rate and new bonds are paying 9 percent, what is the most you can get for your old bond?
 
  A) 917.43 B) 944.95 C) 970.87 D) 1,000

Question 2

What is the present value of 777 in one year if the current rate of interest is 7 percent?
 
  A) 831.39 B) 726.17 C) 457.06 D) 111.00


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ryansturges

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


londonang

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Reply 2 on: Jun 29, 2018
Excellent

Chelseyj.hasty

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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