The Seaside Inn Has Bonds Outstanding with a Par Value

question 38

Multiple Choice

The Seaside Inn has bonds outstanding with a par value of $1,000 each and a 4.30% coupon. The bonds mature in 7.5 years and pay interest semiannually. What is the current value of each of these bonds if the yield to maturity is 5.0%?

• A)$938.40
• B)$956.67
• C)$988.55
• D)$1,004.36
• E)$1,009.47

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