You are in possession of a bond that has 3 years remaining to maturity.The original maturity on the bond was 30 years.The bond has a $1,000 face value and a 9% coupon rate.If interest is paid annually and bonds with similar risk currently have an interest rate of 10%,what is the current value of the bond?
A) $906
B) $975
C) $1,000
D) $1,025
E) $1,103
Correct Answer:
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