题目：
| The investor would prefer the municipal bond because the taxable-equivalent yield is greater than the yield on the corporate bond: 6.4%＞6.375%. |
Assume a city issues a $ 5 million bond to build a new arena. The bond pays 8 percent semiannual interest and will mature in 10 years. Current interest rates are 9 percent. What is the pres ent value of this bond and what will the bond’s value be in seven years from today Present Value Value in 7 Years from Today（）①A. 4674802 4931276 ②B. 5339758 4871053 ③C. 4674802 4871053
A. ①
B. ②
C. ③
答案：
参考答案：C
解析：
Since the current interest rate is above the coupon rate the bond will be issued at a discount. FV=$5000000, N=20, PMT=0.04×5 million = $200000, I/Y=4.5, CPT PV=$-4674802. Since the current interest rate is above the coupon rate the bond will be issued at a discount. FV=$5000000, N=6, PMT=0.04×5 million=$200000, I/Y=4.5, CPT PV=$-4871053.
