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    5))/0.06) = $21.06 Similarly the principal payment at the end of 5 years can be valued as 100/1.065 = $74.73 Therefore the total value of the bond today is $95.79

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    What is the fair price for a bond paying annual coupons at 5% and maturing in 5 years. Assume par value of
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    A. $94.73
    B. $104.33
    C. $100.00
    D. $95.79
    Answer: D
    Explanation:
    Explanation
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