Multiple Choice
Jeremy Kohn is planning to invest in a 10-year bond that pays a 12 percent coupon. The current market rate for similar bonds is 9 percent. Assume semiannual coupon payments. What is the maximum price that should be paid for this bond? (Do not round intermediate computations. Round your final answer to the nearest dollar.)
A) $951
B) $882
C) $1,033
D) $1,195
Correct Answer:
Verified
Correct Answer:
Verified
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