Question

A coupon bond pays interest semi-annually, matures in five years, has a par value of $1,000, a coupon rate of 12%, and an effective annual yield to maturity of 10.25%. The price the bond should sell for today is

A. $922.77.

B. $924.16.

C. $1,075.80.

D. $1,077.20.

E. None of the options are correct.

Answer

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