A $20,000 Bond Is Purchased That Matures in 10 Years

A $20,000 bond is purchased that matures in 10 years.The bond is redeemable at par.This bond has coupons payable quarterly and the quarterly coupon amount is $400.What is the current market value of the bond if 10 year bonds are being priced today to yield j₂ = 6%? (Answer to the nearest dollar)

A) $17,025
B) $20,000
C) $21,040
D) $23,064

Correct Answer:

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