How much would you be prepared to pay for a $500 bond that comes due in 5 years and pays $80 interest annually, and your required return is 8%? (Pick the closest answer.)
A. $740
B. $660
C. $608
D. $500
Answer:B
How much would you be prepared to pay for a $500 bond that comes due in 5 years and pays $80 interest annually, and your required return is 8%? (Pick the closest answer.)
A. $740 B. $660 C. $608 D. $500