RJR Nabisco Recently Experienced a Market Reevaluation Due to a Number

Multiple Choice

RJR Nabisco recently experienced a market reevaluation due to a number of tobacco lawsuits. The firm has a bond outstanding with 15 years to maturity, and a coupon rate of 8 percent, with interest being paid semiannually. The required yield to maturity has risen to 16%. What is the price of the RJR Nabisco bond?

A) $1,000
B) $804
C) $767
D) $550