Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 1 decade ago

A ten-year bond, with par value equals $1000, pays 10% annually.?

If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis.

a. $1,000

b. $1127.50

c. $1297.85

d. $2549.85

2 Answers

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  • 1 decade ago
    Favorite Answer

    c. The bond is worth much more since its interest rate is almost double the current rate.

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  • 1 decade ago

    b

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