A 20-year bond pays 12% on a face value of $1,000 - 605

Solution Posted by
Solution Detail
Price: $1.25
  • From: ,
  • Posted on: Thu 01 Mar, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

A 20-year bond pays 12% on a face value of $1,000. If similar bonds are currently yielding 9%, What is the market value of the bond? Use annual analysis.
A) over $1,000
B) under $1,000
C) over $1,200
D) not enough information given to tell

 

Solution Description