[Solved] An Investor Purchases a 20-Year, $1,000 Par Value Bond That

Question 52
Multiple Choice

An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is five percent, what is the current market value of the bond?

A)$ 858.
B)$1,686 .
D)$ 893.*PVA of $1: n=40; i=5% **PV of $1: n=40; i=5%

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