What is the price of a 2-year maturity bond with a 10% coupon rate paid annually? (Par value = $1,000)

Suppose that all investors expect that interest rates for the 4 years will be as follows:







A. $1,092

B. $1,054

C. $1,000

D. $1,073

E. None of the options are correct.


D. $1,073



Business

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