Question 10
Jeremy Kohn is planning to invest in an 13-year bond that pays a 10 percent coupon. The current market rate for similar bonds is 8 percent. Assume semiannual coupon payments.
What is the maximum price that should be paid for this bond? (Do not round intermediate computations. Round your final answer to the nearest dollar.)
$1,014
$1,036
$1,160
$1,188