A $1,000 face value bond currently has a yield to maturity of 9.06%. The bond matures in three years and pays interest annually. The coupon rate is 7.00%. What is the current price of this bond? Group of answer choices $947.91 $949.60 $1,005.26 $1,008.18

A $1,000 face value bond currently has a yield to maturity of 9.06%. The bond matures in three years and pays interest annually. The coupon rate is 7.00%. What is the current price of this bond? Group of answer choices $947.91 $949.60 $1,005.26 $1,008.18

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

A $1,000 face value bond currently has a yield to maturity of 9.06%. The bond matures in three years and pays interest annually. The coupon rate is 7.00%. What is the current price of this bond?

Group of answer choices

$947.91

$949.60

$1,005.26

$1,008.18

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