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Roy is interested in buying a five-year bond that pays a coupon of 10 percent on a semiannual basis. The current market rate for similar bonds is 8.8 percent. He was offered the bond by a friend at a price of 1,100. Should he buy the bond from his friend? Round your final answer to the nearest dollar.)

A.Yes, because the market price of the bond is $1,265

B. No, because the market price of the bond is $1,048

C. No, because the market price of the bond is $1,099

D. none of the above

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92057989

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