A Portfolio Manager Is Considering the Purchase of a Bond

Multiple Choice

A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in three years. If the required rate of return on the Bond is 5%, the price of the bond per 100 of par value is closest to:

A) 98.65.
B) 101.36.
C) 106.43.