Which one of the following is the correct bond pricing equation?
A) Bond value = {C}{[1 - 1/(1 + r) ]/rt} + F - 1/(1 + r) t]/r
B) Bond value = {C}{[1 + 1/(1 + r) t]/r} + F/(1 + r) t
C) Bond value = {C}{[1 - 1/(1 + r) t]/r} + F/(1 + r) t
D) Bond value = {C}{[1 + 1/(1 + r) ]/rt} + F/(1 + r)
E) Bond value = {C}{[1 + 1/(1 + r) t]/r} + [F - (1 + rt) /r]
Correct Answer:
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