Question: A 6 year bond issued today by Elpha, Inc. has a coupon rate of 8%, a required return of 3% and a face value of

A 6 year bond issued today by Elpha, Inc. has a coupon rate of 8%, a required return of 3% and a face value of $1000. The bond will be sold 2 years from now when interest rates will be 4%. What is the beginning value of the bond when it is issued (to the nearest dollar)? $1,271 $1,000 $1,196 $1,312 $1,208

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