1 bavarian sausage just issued a 10 year 7 coupon bond the

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Reference no: EM13380690

1. Bavarian Sausage just issued a 10 year 7% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the required return on the bond is 10%, what is the bond's price?
a. $815.66
b. $923.67
c. $1,000.00
d. $1,256.35

2. Bavarian Sausage just issued a 10-year 7% coupon bond. The face value of the bond is $1,000 and the bond makes semiannual coupon payments. If the required return on the bond is 10%, what is the bond's price?
a. $815.66
b. $1,000
c. $813.07
d. $1,035.27

3. Bavarian Sausage just issued a 10-year 12% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the required return on the bond is 10%, what is the bond's price?
a. $815.16
b. $1,000
c. $1,122.89
d. $1067.24

4. Bavarian Sausage just issued a 10-year 12% coupon bond. The face value of the bond is $1,000 and the bond makes semiannual coupon payments. If the required return on the bond is 10%, what is the bond's price?
a. $1,122.89
b. $815.26
c. $1,000.00
d. $1,124.62

Reference no: EM13380690

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