Solved

Suppose a Two-Year 9% P $98206.24 \$ 98 \quad 206.24

Question 2

Multiple Choice

Suppose a two-year 9% p.a.bond with a face value of $100 000 has a yield of 8% p.a.What is the price of this bond provided it pays semi-annual coupons?


A) $98206.24 \$ 98 \quad 206.24
B) $100719.11 \$ 100 \quad 719.11
C) $101814.95 \$ 101 \quad 814.95
D) $101937.34 \$ 101 \quad 937.34

Correct Answer:

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