An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
A) $828.
B) $1,686.
C) $1,000.
D) $893.

Question

Quizplus · Accepted Answer

11ea937b_3640_37b1_a419_5f01e9ea490f_TB2599_00 *PVA of $1: n = 40; i = 5%
**PV of $1: n = 40; i = 5%

An Investor Purchases a 20-Year, $1,000 Par Value Bond That