Hewitt Packing Company Has an Issue of $1,000 Par Value

Multiple Choice

Hewitt Packing Company has an issue of $1,000 par value bonds with a 14 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. The current value of each Hewitt bond is ________.

A) $791.00
B) $1,000
C) $1,052.24
D) $1,113.00