Question: 1. Rick bought a bond when it was issued by Macroflex. The bond, which has a $1,000 face value and a coupon rate equal to

1. Rick bought a bond when it was issued by Macroflex. The bond, which has a $1,000 face value and a coupon rate equal to 8 percent, matures in six years. Interest is paid every six months; the next interest payment is scheduled for six months from today. If the yield on similar risk investments is 8 percent, what is the current market value (price) of the bond?

a.

$841.15

b.

$1,238.28

c.

$1000.00

d.

$757.26

e.

$844.45

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