An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of interest is 5%, what is the current market value of the bond? A) $828. B)...

An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of<br>interest is 5%, what is the current market value of the bond?<br>A) $828.<br>B) $893.<br>C) $1,000.<br>D) $1,686.<br>*PV of $1 ordinary annuity is 17.15909: n = 40; i = 5%<br>**PV of $1 is 0.14205: n = 40; i = 5%<br>O A<br>O B<br>O D<br>

Extracted text: An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of interest is 5%, what is the current market value of the bond? A) $828. B) $893. C) $1,000. D) $1,686. *PV of $1 ordinary annuity is 17.15909: n = 40; i = 5% **PV of $1 is 0.14205: n = 40; i = 5% O A O B O D

Jun 02, 2022

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An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $50. If the semiannual market rate of interest is 5%, what is the current market value of the bond? A) $828. B)...

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