Problem:
Gugenheim, Inc. offers a 9 percent coupon bond with annual payments. The yield to maturity is 5.30 percent and the maturity date is 8 years.
Required:
Question: What is the market price of a $1,000 face value bond?
- $1,226.22
- $1,246.32
- $989.02
- $1,236.27
- $1,359.90
Note: Show supporting computations in good form.