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Question 42

Multiple Choice

Use the information for the question(s) below.
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years.The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
-Assuming the appropriate YTM on the Sisyphean bond is 9.0%,then the price at which this bond trades will be closest to:


A) $946.
B) $919.
C) $1086.
D) $1000.

Correct Answer:

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