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A company has 7-year bonds outstanding that pay an 9.0 percent coupon rate. Investors buying the bond today can expect to earn a yield to

A company has 7-year bonds outstanding that pay an 9.0 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 12.0 percent p.a.. What should the company's bonds be priced at today? Assume annual coupon payments and a face value of $1000. (Rounded to the nearest dollar)

Select one:

a. $863

b. $658

c. $2211

d. $1151

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