Question
Summit Investment Consulting is considering purchasing $1,450,000 in face value of Gianna Enterprises' 15-year, 3.5% bonds currently offered at a yield to maturity of 3.85%.
Summit Investment Consulting is considering purchasing $1,450,000 in face value of Gianna Enterprises' 15-year, 3.5% bonds currently offered at a yield to maturity of 3.85%. The cost of the bonds is closest to:
| A. | $1,508,450. | |
| B. | $1,392,579. | |
| C. | $1,360,622 |
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
