A 20-year bond pays 12% on a face value of $1,000. If similar bonds are currently yielding 9%, what is the market value of the bond? Use annual analysis.
A. over $1,000
B. under $1,000
C. over $1,200
D. not enough information given to tell
Answer:C
A 20-year bond pays 12% on a face value of $1,000. If similar bonds are currently yielding 9%, what is the market value of the bond? Use annual analysis.
A. over $1,000 B. under $1,000 C. over $1,200 D. not enough information given to tell