The Gab corporation bonds are currently selling in the market. These bonds have 7 years left to maturity and have a coupon rate of 6.53% paid annually. If the interest rate in the market is currently 4.5%, calculate the current market price of this bond."
a) $959.60
b) $887.39
c) $1,119.62
d) $1,087.39
e) $1,147.21

Question

19-06-2024
Business

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The Gab corporation bonds are currently selling in the market. These bonds have 7 years left to maturity and have a coupon rate of 6.53% paid annually. If the interest rate in the market is currently 4.5%, calculate the current market price of this bond."
a) $959.60
b) $887.39
c) $1,119.62
d) $1,087.39
e) $1,147.21

Sagot :

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