Multiple Choice
Flyover Airlines Inc.issued 20-year,8% per annum semi-annual coupon bonds at their face value of $1,000.Immediately after issue a major disaster befell the airline and the yield to maturity on their bonds rose to 15%.per annum.What is the new price of the firm's bonds?
A) $559.20
B) $613.22
C) $1,000
D) $1324.18
Correct Answer:
Verified
Correct Answer:
Verified
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