A bond matures in 20 years, at which time it pays the owner $1,000. It also pays $70 at the end of
each of the next 20 years. If similar bonds are currently yielding 7%, what is the market value of the
bond?
A) under $1,000
B) over $1,000
C) exactly $1,000
D) cannot be determined from the information given
ANSWER
C
Place an order in 3 easy steps. Takes less than 5 mins.