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Roodhouse Rod and Reel Reconditioning, Ltd. issued $400 million worth of 25-year bonds ten years ago. Each band has a $1,000 par value (it sold

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Roodhouse Rod and Reel Reconditioning, Ltd. issued $400 million worth of 25-year bonds ten years ago. Each band has a $1,000 par value (it sold initially for $1,000 and will return $1,000 at maturity) and a 4.5% annual coupon interest rate, but with interest paid every six months - so be sure to compute semiannually, and compute with enough decimal places to assure accuracy! If investors' expected yield to maturity (which we treat as an effective annual rate, or EAR, measure) is 5.4729%, then at what price would we expect each of these semiannual-interest-payment bonds to sell today? [In subsequent questions 15 and 16 you will compute a coupon bond's theoretical value based on different coupon rate, remaining life, and yield to maturity figures.] O A $945.09 B. $858.18 O C. $908.28 OD. $1,097.40 E. $901.32

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