Use the Information for the Question(s)below

question 42

Multiple Choice

Use the information for the question(s) below.
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years.The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
-Assuming the appropriate YTM on the Sisyphean bond is 9.0%,then the price at which this bond trades will be closest to:

• A)$946.
• B)$919.
• C)$1086.
• D)$1000.

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Definitions:

Demonstrating Behaviors

The act of showing or exemplifying specific actions or behaviors in order to teach, persuade, or model them to others.

Particular Situation

A specific set of circumstances or context in which events occur or decisions are made.

Family Background

The social, economic, cultural, and educational context from which an individual comes, influencing their development and opportunities.

Beliefs

Refers to the convictions or acceptances that something is true or exists, often without proof.