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What Is the Purchase Price of a Bond That Is

Question 60

Multiple Choice

What is the purchase price of a bond that is issued on May 1, 2002 for 22 years at a coupon rate of 9.4% compounded semi-annually? The purchase date of the bond is May 11, 2007 and the yield rate is 8.5% compounded semi-annually. The bond has a face value of $5000 and is redeemable at par.


A) $4513.30
B) $5413.30
C) $5431.30
D) $4531.30
E) $4533.30

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