Question: Eastern Digital has issued a bond with a par value of $2,000 each and a 5% per year coupon. The bonds mature in 5 years

Eastern Digital has issued a bond with a par value of $2,000 each and a 5% per year coupon. The bonds mature in 5 years and pay interest annually. What is the current value of the bond if the market interest rate is 7%?

Question 9 options:

a) $2,000.00

b) $1,242.67

c)$1,835.99

d)$3,529.45

e) None of the above

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