Question
In: Finance
The next 3 questions refer to the problem below: A corporate bond with a face value...
The next 3 questions refer to the problem below:
A corporate bond with a face value of $1,000 matures in 4 years and has an annual rate of return of 6.25%. The current annual market interest rate is 7%. Interest is paid semi - annually.
1)What is the present value of only the coupon payments?
Group of answer choices
$31.50
$50.00
$62.50
$214.81
$312.50
$1,000
2)What is the present value of only the bond's face value payable at maturity?
Group of answer choices
0
$62.50
$312.50
$145.40
$759.41
$1,000
3)What is the total bond value (same as the current price of the bond)?
Group of answer choices
$500
$750
$974.22
$1,000
Greater than $1,000
Cannot be determined
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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