Assuming the appropriate YTM on the Sisyphean bond is 9.0%,then the price that this bond trades for will be closest to:

Name: Assuming the appropriate YTM on the Sisyphean bond is 9.0%,then the price that this bond trades for will be closest to:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Using the bond pricing formula, we get:

Price = (80/1.09) + (80/1.09^2) + (80/1.09^3) + ...+((1000+80)/1.09^10)
      = 919.15

Therefore, the price of the bond is closest to $919. Among the given choices, the closest one is B.

Assuming the Appropriate YTM on the Sisyphean Bond Is 9