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Jane Thorpe has been offered a seven-year bond issued by Barone, Inc., at a price of 943.22. The bond has a coupon rate of 9
Jane Thorpe has been offered a seven-year bond issued by Barone, Inc., at a price of 943.22. The bond has a coupon rate of 9 percent and pays the coupon semiannually. Similar bonds in the market will yield 10 percent today. Should she buy the bonds at the offered price?
A. Yes, the bond is worth more at $1,015.
B. No, the bond is only worth $921.
C. Yes, the bond is worth more at $951.
D. No, the bond is only worth $912.
PLEASE SHOW WHAT TO INPUT ON FINANCIAL CALCULATOR!! THANKS!
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