Two years ago, Trans$-$Atlantic Airlines sold a $$250$ million bond issue to finance the purchase of new jet airliners. These bonds were issued in $$1,000$ denominations with an original maturity of $12$ years and a coupon rate of $12\%.$ Determine the value today of one of these bonds to an investor who requires a $14\%$ rate of return on these securities$.$

Question $4$Answer

a$.$

$$626$

b$.$

$$463$

c$.$

$$270$

d$.$

$$897$