Multiple Choice
A firm has an issue of $1,000 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) $1,000
B) $805.20
C) $1,115.50
D) $1,268.40
Correct Answer:
Verified
Correct Answer:
Verified
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