A 10-year annual payment corporate bond has a market price


A 10-year annual payment corporate bond has a market price of $1058. It pays annual interest of $60 and its required rate of return is 4 percent. By how much is the bond mispriced?

A. $0.00

B. Overpriced by $7.29

C. Underpriced by $7.29

D. Overpriced by $4.22

E. Underpriced by $4.22

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Financial Management: A 10-year annual payment corporate bond has a market price
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