Exhibit 17.2 Use the Information Below for the Following Problem(S)

question 69

Multiple Choice

Exhibit 17.2
Use the Information Below for the Following Problem(S)
XLR Corporation just issued a $1,000 par value bond with a 7% yield to maturity, twenty years to maturity, with an 8% semi-annual coupon rate.
-Refer to Exhibit 17.2.If market interest rates rise to 10%,what will the price of the XLR Corporate bond be in three years?

• A) $832.89
• B) $838.07
• C) $1097.63
• D) $1,102.85
• E) $1,191.43