Answer:
C. $1000
Explanation:
The computation of the approximate market value is shown below:
Current yield = Annual coupon payment ÷ market value
8% = ($1,000 × 8%) ÷ market value
8% = $80 ÷ market value
So, the market value is
= $80 ÷ 0.08
= $1,000
Hence, the approximate market value is $1,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
