单选题
Given a required yield to maturity of 6 percent, what is the intrinsic value of a semi-annual pay coupon bond with an 8 percent coupon and 15 years remaining until maturity?
A、
A. $1196.
B、
B. $1202.
C、
C. $1095.
【正确答案】
A
【答案解析】
Using semiannual payments, I=6/2 =3%, PMT=80/2=$40, N=15×2=30; FV=$1000. Solve for PV=$1196.
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