Problem 9 : The ATT corporate bond with a coupon rate of 7%, maturity in 5 years and a required yield of 6% should sell at a price of; ( Assume a market premium of 5% and a beta 0f 0.8)

a): More than $1,000 b): 8.5% above $1,000 c): $1, 000 d): $978 e): 9.2% above $1,000

f): Not enough information