Assume that Microsoft bonds have just left the printer and have a stated coupon of $100 (a coupon rate of 10%) and a yield-to-maturity of 15%.The bonds mature in three years and the next coupon is due in one year.What is the fair price for the bond today?
A) $956.52
B) $885.84
C) $832.39
D) $1,000
E) $918.71
Correct Answer:
Verified
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