Big House Nursery Inc.has issued 20-year $1,000 face value,8% annual coupon bonds,with a yield to maturity of 10%.The current price of the bond is ________.
A) $1,000.00
B) $1,196.36
C) $829.73
D) There is not enough information to answer this question.
Correct Answer:
Verified
Q12: A bond may be issued by _.
A)companies
B)state
Q13: The _ is the annual coupon payment
Q14: Portland Brewery Inc.recently issued 30-year $1,000 face
Q15: The appropriate rate to use to discount
Q16: Fifteen years ago McDemott's Motels Inc.issued twenty-five-year
Q18: The _ is the yield an individual
Q19: A bond is a _ instrument by
Q20: The coupon payment for an annual-coupon corporate
Q21: Zero-coupon U.S.Government bonds are known as _.
A)STRIPS
B)muni-bonds
C)Uncle
Q22: Zero-coupon bonds are priced at deep discounts.
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