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An 16 Year Corporate Bond Pays Has a 3

Question 67

Multiple Choice

An 16 year corporate bond pays has a 3.5% coupon rate. What should be the bond's price if the required return is 3% and the bond pays interest annually?


A) $1060.44
B) $1062.81
C) $1065.45
D) $1072.99
A 10-year semiannual payment bond with a par value of $1,000 has a 7% coupon annual rate. Currently this bond is a par bond in market. Use the above information to answer the following three questions.

Correct Answer:

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