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A to Z company has issued 25-year bonds that pay semiannual coupons at a rate of 9.875 per cent. The current market rate for similar

A to Z" company has issued 25-year bonds that pay semiannual coupons at a rate of 9.875 per cent. The current market rate for similar securities is 12 per cent. What is the current market price of this bond?

Question 10 options:

1)

$1086.46

2)

$832.53

3)

$904.76

4)

None of the above

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