me File Edit View History Bookmarks People Window Help D Connect Assignment #4 (

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me File Edit View History Bookmarks People Window Help D Connect Assignment #4 (Sumx tpx ct Assignment #4 (Summer 2018) Question 10 (of 17) value: 1.00 points Staind, Inc., has 7 percent coupon bonds on the market that have 12 years left to maturity. The bonds make annual payments. If the YTM on these bonds Is 10 percent, what is the current bond price? o $1,242.28 O $795.59 O $835.37 O $755.81 O $1,030.00 References eBook & Resources Learning Objective: 07-02 Bond values and yields and why they luctuate Multiple Cholce

Explanation / Answer

ANSWER is =$795.59

Current Price= C*(1-1/(1+r)^n)/r + FV/(1+r)^n

=7%*1000*(1-1/1.1^12)/0.1 + 1000/1.1^12

=$795.59

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