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Suppose that Parker Ranch Company sold an issue of bonds that had an original maturity of 10 years. The bonds had a $1,000 face value

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Suppose that Parker Ranch Company sold an issue of bonds that had an original maturity of 10 years. The bonds had a $1,000 face value and a 10 percent annual coupon rate. The bonds make semi-annual coupon payments. Three years after the bonds were issued, (immediately after the 6th coupon payment), the going nominal rate of interest (the required rate of return) on bonds similar to this fell to 6 percent annually. What price would you expect the bonds to sell for? O A. $1,225.92 O B. $907.05 O C. $1,000 O D. $1,297.55 O E. $1,700.00

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