An issue of Australian treasury bonds with par of $1,000 matures in 15 years and pays 8% coupon interest annually. The market price of the bonds is $1,085 and your required rate of return is 10% p.a. Determine the value of the bond to you, given your required rate of return.

A). $103.00
B). $108.00
C). $847.88
D). $1,085.00

Answer rating: 100% (QA)

Given the required rate of return of 10 value of the bond ... View the full answer