An investor gathered the following information on two zero-coupon bonds:
- 1-year, $800 par, zero-coupon bond valued at $762
- 2-year, $10,800 par, zero-coupon bond valued at $9,796
Given the above information, how much should an investor pay for a $10,000 par, 2-year, 8%, annual-pay coupon bond?
A. $9,796.
B. $10,000.
C. $10,558.
|
