With a 10% discount rate,the present value factor of $1 received 10 years from now is 0.386.The present value of a $1 annuity factor for 10 years is 6.145.Given these values,the present value of a $1,000 (par) ,10-year corporate bond with a 12% coupon rate is
A) $6,191.32.
B) $1,586.00.
C) $1,123.40.
D) $1,000.50
Correct Answer:
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