Company Napoleon, a producer of French brandy, has issued 5-year bonds that pay a coupon of 6.375%

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Company Napoleon, a producer of French brandy, has issued 5-year bonds that pay a coupon of 6.375% annually. The current market rate for similar bonds is 8.5%. How much will you be willing to pay for Napoleon’s bonds today with a face value of 1,000?

a. 1,023

b. 1,137

c. 916

d. 897

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