The Country Inn Has Bonds Outstanding with a Par Value

question 34

Multiple Choice

The Country Inn has bonds outstanding with a par value of $1,000 each and a 5.25 percent coupon.The bonds mature in 8.5 years and pay interest semiannually.What is the current value of each of these bonds if the yield to maturity is 6.0 percent?

• A) $938.40
• B) $950.63
• C) $988.55
• D) $1,004.36
• E) $1,009.47

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