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A $1000 Bond with Semi-Annual Coupons Is Redeemable for $1030

Question 17

Multiple Choice

A $1000 bond with semi-annual coupons is redeemable for $1030 in 5 years.The write-down (book value adjustment) in the 1st coupon period is $4.09.What is the price of the bond to yield j2 = 9%?


A) $949.74
B) $979.74
C) $1050.26
D) $1080.26

Correct Answer:

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