A 20-year bond pays 12% on a face value of $1,000. If similar bonds are currently yielding 9%, - 4695

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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 

 

Answer: C Difficulty: Easy Type: Application 

 
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