Solved

If You Own a $1000 Face Value Bond with One

Question 26

Multiple Choice

If you own a $1000 face value bond with one year remaining to maturity and a five per cent interest rate, and new bonds are paying 12 per cent, what is the most you can get for your old bond?


A) $1120
B) $1000
C) $937.50
D) impossible to determine without additional information

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