Question: Harry Ltd is issuing a $ 1 , 0 0 0 corporate 1 0 - year bond with a coupon rate of 4 per cent.

Harry Ltd is issuing a $1,000 corporate 10-year bond with a coupon rate of 4 per cent. The interest rate for similar bonds is currently 2 per cent. Assuming annual payments, what is the present value of the bond? Round off your answer to the nearest dollar amount.
a.
$1180
b.
$1647
c.
$1032
d.
$1974

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