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Question 5 A company has just issued a 5 year 5.5% coupon bond. The face value of the bond is $1,000 and the bond makes

Question 5

A company has just issued a 5 year 5.5% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the required return on the bond is 15.0%, what is the bonds price? (to the nearest cent)

Select one:

a. $681.55

b. $673.96

c. $1405.68

d. $497.18

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