A bond has a face value of $10,000. The bond has a coupon Pate of annually. The bond matures in 10 years. The yield on the bond is 7.0%. What is the current price of the bond? $10,710.62 $10,000.00 $10,700.00 $10,702.36

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...
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A bond has a face value of $10,000. The bond has a coupon rate of 8.0% and pays interest
annually. The bond matures in 10 years. The yield on the bond is 7.0%. What is the current price
of the bond?
$10,710.62
$10,000.00
$10.700.00
$10,702.36
Question 4
A bond has a face value of $10,000. The bond matures in 15 years. The coupon rate on the bond
is 7.00%. The Yield is 6.00%. Which of the following is true about the current price of the bond?
There is no way to calculate the price of the bond
The price will be the same as face value
The price will be lower than face value
The price will be higher than face value
Transcribed Image Text:D A bond has a face value of $10,000. The bond has a coupon rate of 8.0% and pays interest annually. The bond matures in 10 years. The yield on the bond is 7.0%. What is the current price of the bond? $10,710.62 $10,000.00 $10.700.00 $10,702.36 Question 4 A bond has a face value of $10,000. The bond matures in 15 years. The coupon rate on the bond is 7.00%. The Yield is 6.00%. Which of the following is true about the current price of the bond? There is no way to calculate the price of the bond The price will be the same as face value The price will be lower than face value The price will be higher than face value
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