Multiple Choice
J&J Manufacturing just issued a bond with a $1,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays annual coupons, and the yield to maturity is 6.8%, what% of the bond's
Total price is represented by the present value of the coupons?
A) 85.7%
B) 86.1%
C) 86.4%
D) 93.0%
E) 100.0%
Correct Answer:
Verified
Correct Answer:
Verified
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