Question 11

Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6.1% on these bonds. What is the bond's price?

a. $1,024.74

b. $1,147.71

c. $1,116.97

d. $1,096.47

e. $1,280.93