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Calculation of current selling price of a bond

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Question

A 10-year Treasury bond with a $1,000 par value has a 12% coupon and pay interest every 6 months. The bond is three years old and has just made its sixth payment. If interest rates fell to 8%, what would price would these bonds sell at?

A. $1,208.25

B. $1,250.51

C. $1,211.26

D. $1,271.81

Summary

The question belongs to Finance and it is about calculation of current selling price of a bond.

Reference no: EM13825974

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