An investor purchases a 10 - year, $1000 p

问题单项选择题

An investor purchases a 10 - year, $1000 par value bond that pays annual coupons of $100. If the market rate of interest is 12 percent, what is the current market value of the bond()

A. $ 950.

B. $1100.

C. $ 887.

答案

参考答案：C

解析：

Note that bond problems are just mixed annuity problems. You can solve bond problems directly with your financial calculator using all five of the main TVM keys at once. For bond - types of problems the bond's price (PV) will be negative, while the coupon payment (PMT) and par value (FV) will be positive. N=10; I/Y=12; FV=1000; PMT=100; CPT→PV=-886.99.