Question
Company B issued 25-year, noncallable, 8.5% annual coupon bonds at their par value of $1,000 five years ago . Today, the market interest rate on
Company B issued 25-year, noncallable, 8.5% annual coupon bonds at their par value of $1,000 five years ago . Today, the market interest rate on these bonds is 5.75%. What is the current price of the bonds?
| a. | $824.15 | |
| b. | $1202.94 | |
| c. | $1321.93 | |
| d. | $1181.45 | |
| e. | $1005.85 |
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Fundamentals Of Corporate Finance
Authors: David W Blackwell, Robert Parrino, David S Kidwell
1st Edition
0471270563, 9780471270560
