A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 5 years from now?

A. $839.31
B. $860.83
C. $882.90
D. $904.97
E. $927.60


Answer: C

Business

You might also like to view...

The trend of the world economy toward becoming a more interdependent system is called   

A. international cooperation. B. globalization. C. world partnership. D. economic defragmentation. E. international unification.

Business

In one area of emerging environmental policy consensus, the real ethical issue in the debate over the use of nonhuman natural objects as resources is not that we use them, but which objects we use, how, what for, and the rate at which we use them.

Answer the following statement true (T) or false (F)

Business

General Electric in 2010 published its Citizenship Report titled ______.

a. Financial Growth b. Sustainable Growth c. Sustainable Development d. Financial Development

Business

An understatement of Year 1's beginning inventory will:

a. cause Year 2's net income to be overstated. b. cause Year 1's cost of goods sold to be understated. c. have no effect on Year 1's net income. d. cause Year 2's net income to be understated.

Business