What is the approximate market value of a $1,000 corporate bond that pays 8 percent interest when comparable bonds are paying 9 percent interest?
A)$80
B)$90
C)$889
D)$1,000
E)$1,125

Name: What is the approximate market value of a $1,000 corporate bond that pays 8 percent interest when comparable bonds are paying 9 percent interest? A)$80 B)$90 C)$889 D)$1,000 E)$1,125
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Question

Quizplus · Accepted Answer

(1,000 F1F1F1S1F1F1F10.08) / .09 = 80 / .09 = $889 (rounded).

What Is the Approximate Market Value of a $1,000 Corporate