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Ten years ago, Pharos Company issued a 30-year bond, with a par value of $1,000 and with a coupon rate of 6%, payable annually. Today,

Ten years ago, Pharos Company issued a 30-year bond, with a par value of $1,000 and with a coupon rate of 6%, payable annually. Today, the bonds have 20 years remaining to maturity, and the yield to maturity (YTM) is 9%. What is the price of the bond?

  • A. $726.11
  • B. $814.26
  • C. $909.67
  • D. $1,344.09

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