What is the price of a Coupon bond that has an annual payment of $85 and a face value of $1000and a yield to maturity of 12% and a maturity of two years? Select one: a. $700.70 b. $800.45 c. $940.84 d. $915.94
Added by Dana P.
Step 1
PV = $85 x (1 - 1/(1+0.12)^2) / 0.12 PV = $150.42 Show more…
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