Due to a 1% increase in market interest rates, calculate the current price of a 5% coupon, 8-year bond sold at $1,000 par value (assume annual payments) Group of answer choices $1,067.33 $937.90 $1,000

Due to a 1% increase in market interest rates, calculate the current price of a 5% coupon, 8-year bond sold at $1,000 par value (assume annual payments) Group of answer choices $1,067.33 $937.90 $1,000

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 7DTM

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Question

Due to a 1% increase in market interest rates, calculate the current price of a 5% coupon, 8-year bond sold at $1,000 par value (assume annual payments)

Group of answer choices

$1,067.33

$937.90

$1,000

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