You are thinking of buying a newly issued,5-year bond that has a face value of $10,000 and offers no annual coupon payments.What is the most you should pay for this bond,if the interest rate is 5 percent (0.05) per year?
A) $5,000.00
B) $6,139.13
C) $7,835.26
D) $10,000.00
E) $43,294.77
Correct Answer:
Verified
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