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12 AT&T issued a 20year bond on January 1, 2007 with a coupon rate of 4% and a face value of $1,000. It is now
12
AT&T issued a 20year bond on January 1, 2007 with a coupon rate of 4% and a face value of
$1,000. It is now January 1, 2012 and the bond matures on January 1, 2027. What is the value
of one AT&T bond to an investor with a required return of 8%?
A.
$732
B.
$77
8
C.
$658
D.
$940
E.
$1,00
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