Exhibit 11.2 Use the Information Below for the Following Problem(S)

question 49

Multiple Choice

Exhibit 11.2
Use the Information Below for the Following Problem(S)
A major manufacturer is reevaluating its bonds since it is planning to issue a new bond in the current market. The firm's outstanding bond issue has 7 years remaining till maturity. The bonds were issued with an 8 percent coupon rate (paid quarterly) and a par value of $1,000. The required rate of return is 10 percent.
-Refer to Exhibit 11.2.What is the current value of these securities?

• A) $900.18
• B) $1151.92
• C) $972.52
• D) $1113.63
• E) $904.00

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