question archive What is the value of a bond which doesn't pay any coupon payments and it offers 7% percent interest for a single period? Select one: a
What is the value of a bond which doesn't pay any coupon payments and it offers 7% percent interest for a single period? Select one: a
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What is the value of a bond which doesn't pay any coupon payments and it offers 7% percent interest for a single period? Select one: a.920.12 b.934.58 c. 1025.88 d.1051.6
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Option b. 934.58
Assuming Maturity Value = 1,000
r = 7%
Value of bond = MV/ (1+r)
= 1,000 / (1+ 0.07)
=934.58
