A bond is trading on the secondary market and will mature in 10 years.The bond has a face value of $1,000 that will be paid at maturity.Further,the bond pays an ANNUAL coupon at 9% of face value.What should the trading price be for the bond if investors seek a 12% on their investment?
A) $1,192.53
B) $830.49
C) $827.95
D) $508.52
Correct Answer:
Verified
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