A bond promises to pay you $7,000.00 in earn 6 percent on securities of equal risks, what would be the present value of the Bond? (to the nearest dollar) years. If you are able to Select one: O a. $4,200 O b. $3,589 OC. $3,727.00 O d. $3,909 A bond will sell at if the required return is greater than the coupon rate

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 16P
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A bond promises to pay you $7,000.00 in 10 years. If you are able to
earn 6 percent on securities of equal risks, what would be the
present value of the Bond? (to the nearest dollar)
Select one:
O a. $4,200
O b. $3,589
Oc. $3,727.00
O d. $3,909
A bond will sell at
if the required return is greater than
the coupon rate.
Transcribed Image Text:A bond promises to pay you $7,000.00 in 10 years. If you are able to earn 6 percent on securities of equal risks, what would be the present value of the Bond? (to the nearest dollar) Select one: O a. $4,200 O b. $3,589 Oc. $3,727.00 O d. $3,909 A bond will sell at if the required return is greater than the coupon rate.
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