Periods
8%/10%/12%/14%
1/0.9259/0.9091/0.8929/0.8772
2/0.8573/0.8264/0.7972/0.7695
3/0.7938/0.7513/0.7118/0.6750
4/0.7350/0.6830/0.6355/0.5921
Periods
8%/10%/12%/14%
1/0.9259/0.9091/0.8929/0.8772
2/1.7883/1.7355/1.6901/1.6467
3/2.5771/2.4869/2.4018/2.3216
4/3.3121/3.1699/3.0373/2.9137
A) $180,093
B) $175,697
C) $199,994
D) $200,000
Answer: B) $175,697
8%/10%/12%/14%
1/0.9259/0.9091/0.8929/0.8772
2/0.8573/0.8264/0.7972/0.7695
3/0.7938/0.7513/0.7118/0.6750
4/0.7350/0.6830/0.6355/0.5921
Periods
8%/10%/12%/14%
1/0.9259/0.9091/0.8929/0.8772
2/1.7883/1.7355/1.6901/1.6467
3/2.5771/2.4869/2.4018/2.3216
4/3.3121/3.1699/3.0373/2.9137
What is the selling price (to the nearest dollar) of 4-year bonds with a par value of $200,000 and an annual coupon rate of 8% that are sold when the market rate of interest is 12%?
A) $180,093
B) $175,697
C) $199,994
D) $200,000
Answer: B) $175,697
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.