A bond's maturity is 2 years, with an annual coupon payment of $10 and a face value of $100. Assuming the interest rate is 5 percent per year, which of the following is the bond's price?
A) $95.24
B) $99.77
C) $109.30
D) $114.29
Correct Answer:
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Q1: The future value of $100 today will
Q3: What is the present value of $100
Q4: When we say that the present value
Q5: What will happen if the current asset
Q6: A lower interest rate:
A)increases the future value
Q7: A dividend is the:
A)payment from a firm
Q8: What will happen if the current asset
Q9: The reason a dollar is worth today
Q10: If i is the interest rate per
Q11: If the interest rate is 5% per
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