JMasson Inc

question 61

Multiple Choice

J.Masson Inc.recently issued noncallable bonds that mature in 10 years.They have a par value of $1,000 and an annual coupon of 5.5%.If the current market interest rate is 7.0%, at what price should the bonds sell?

• A)$829.21
• B)$850.47
• C)$872.28
• D)$894.65
• E)$917.01