A 7 percent coupon bond has a face value of $1,000 and pays interest annually.The current yield is 6.8 percent.What is the current price of this bond?
A) $971.43
B) $978.41
C) $1,068.00
D) $1,029.41
E) $1,104.00

Name: A 7 percent coupon bond has a face value of $1,000 and pays interest annually.The current yield is 6.8 percent.What is the current price of this bond? A) $971.43 B) $978.41 C) $1,068.00 D) $1,029.41 E) $1,104.00
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Question

Quizplus · Accepted Answer

Bond price = (.07 × $1,000)/.068 = $1,029.41

A 7 Percent Coupon Bond Has a Face Value of $1,000