Bark Corporation's 10% coupon rate bond was issued for 30 years 25 years ago at a par value of $1000. Today's interest rate is 10%, what is it selling for today?

Name: Bark Corporation's 10% coupon rate bond was issued for 30 years 25 years ago at a par value of $1000. Today's interest rate is 10%, what is it selling for today?
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Question

Quizplus · Accepted Answer

Since the bond's coupon rate matches the current interest rate (both are 10%), the bond will sell at its par value, which is $1000.00.

Bark Corporation's 10% Coupon Rate Bond Was Issued for 30