What is the approximate market value of the bond

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Reference no: EM131299985

1. A ten-year bond pays 7% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity?

A. 9.33%

B. 3.46%

C. 5.34%

D. 4.52%

2. A 15-year zero-coupon bond was issued with a $1000 par value to yield 8%. What is the approximate market value of the bond?

A. $597

B. $315

C. $275

D. $482

Reference no: EM131299985

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