Multiple Choice
A firm has an issue of $1,000 par value bonds with a 9 percent stated interest rate outstanding. Theissue pays interest annually and has 20 years remaining to its maturity date. If bonds of similar riskare currently earning 11 percent, the firm's bond will sell for __________today.
A) $1,000
B) $841
C) $1,123
D) $717
Correct Answer:
Verified
Correct Answer:
Verified
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