Determine what is the market value of the bond

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Problem 1: A 10-year bond pays annual interest of 8% on a face value of $1,000 (Coupon rate of 8%). Assume one coupon payment per year. If similar bonds are currently yielding 9.413%, what is the market value of the bond?

Select one:

A. $877.11
B. $910.94
C. $1,100.78
D. None of these are correct

Reference no: EM132968370

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