If the coupon were set to $70 what would the bond sell for?
A) $824.61.
B) $898.82.
C) $964.25.
D) $1000.00.
E) $1031.74.

Question

Quizplus · Accepted Answer

The bond's price is determined by the present value of its future cash flows, which include the coupon payments and the face value at maturity. With a coupon of $70, the bond's price would be calculated based on the present value of these payments, resulting in a price of $964.25.

If the Coupon Were Set to $70 What Would the Bond