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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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