Multiple Choice
A firm has an issue of $1000 par value bonds with a 12 percent stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8 percent, the firm's bond will sell for_________ today.
A) $805
B) $1,268
C) $1,000
D) $851
Correct Answer:
Verified
Correct Answer:
Verified
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