Moerdyk Corporation's Bonds Have a 15-Year Maturity, a 7

question 69

Multiple Choice

Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6.20%, based on semiannual compounding. What is the bond's price?

• A) $1,047.19
• B) $1,074.05
• C) $1,101.58
• D) $1,129.12
• E) $1,157.35

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Definitions:

Accounting Principle

Fundamental guidelines and rules that govern the accounting process and financial reporting of businesses.