What is the price of the bond if market interest rates are 4 percent?
A)$105,816.44.
B)$105,287.67.
C)$105,242.14.
D)$100,000.00.
E)$106,290.56. [Refer to: 9-89]

Question

Quizplus · Accepted Answer

The price of a bond is calculated based on the present value of its future cash flows, discounted at the market interest rate. Given the options, $105,242.14 is the closest to the calculated bond price when market interest rates are 4 percent.

What Is the Price of the Bond If Market Interest