The GoG has decided to issue Green Bonds to finance its Green Projects. They will issue bonds of 5 years duration that make an annual coupon payment of $100, has a face value of $1,000 and the yield to maturity is 8%. How much do you expect to pay for this bond assuming the market is efficient?

Answer rating: 100% (QA)

ANSWER I The price of a bond is the present value of its future cash flows which in... View the full answer