Question

. A bond has a face value of $1000 and a market price of $1064. If the interest payment on the bond is $100 annually and the bond matures in 10 years, the required rate on the bond is (the nearest rate),

a) 9.00%

b) 10.00%

c) 7.30%

d) 11.50%

Answer #1

Calculator | |

Inputs: | |

PV | (1,064) |

PMT | 100 |

FV | 1,000 |

N | 10 |

Output: | |

I/Y = IRR= | 9.00% |

Answer is 9%

please rate.

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