Problem:
What is the value of a bond that matures in 14 years, has an annual coupon payment of $110, and a par value of $1,000? Assume a required rate of return of 8%, and round your answer to the nearest $10.
Choose one:
- $1,250
- $1,280
- $1,000
- $1,330
Note: Show supporting computations in good form.