A $1000 par value, 12-year annual bond carries a coupon rate of 7%. If the current yield of this bond is 7.995%, its market price to the nearest dollar is ?
A) $876
B) $925
C) $1,075
D) $1.125
Answer: A
A $1000 par value, 12-year annual bond carries a coupon rate of 7%. If the current yield of this bond is 7.995%, its market price to the nearest dollar is ?
A) $876
B) $925
C) $1,075
D) $1.125
Answer: A