Assume there is a bond with the coupon rate of 15.2%, yield to maturity (YTM) of 9.4%, and with the face value of $1,000. Further assume that the bond will mature 9 years from now, and that the interest rate will compound semiannually. What is the bond's current market value? O $1.412.34 O $1,339.25 O $1,392.35 O $1,347.08

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Assume there is a bond with the coupon rate of 15.2%, yield to maturity (YTM) of 9.4%, and with the
face value of $1,000. Further assume that the bond will mature 9 years from now, and that the
interest rate will compound semiannually. What is the bond's current market value?
O $1,412.34
O $1,339.25
O $1,392.35
O $1,347.08
Transcribed Image Text:Assume there is a bond with the coupon rate of 15.2%, yield to maturity (YTM) of 9.4%, and with the face value of $1,000. Further assume that the bond will mature 9 years from now, and that the interest rate will compound semiannually. What is the bond's current market value? O $1,412.34 O $1,339.25 O $1,392.35 O $1,347.08
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