QUESTION 19

In the previous question, you were asked about a corporate bond with the following characteristics:

par value = $1000

coupon rate = 8% per year

payment schedule = semiannual

maturity = 5 years.

Assume that your required rate of return for this bond is 9.5% per year, compounded semiannually. Given this required rate of return:

	A.	the value of the bond will be less than $1000.
	B.	the value of the bond will be equal to $1000.
	C.	the value of the bond will be more than $1000.
	D.	it is impossible to judge the value of the bond based on the information given.
	E.	none of the above is true.