Multiple Choice
What is the market value of a bond that has a required rate of return of 10% p.a.and pays $50 p.a.with only two years remaining to maturity,if the redemption value is $1000 and the initial market value of the bond was $850 when it was first issued eight years ago?
A) $571.80
B) $1421.80
C) $826.45
D) $913.22
Correct Answer:
Verified
Correct Answer:
Verified
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