Ferris Metals Has Bonds Outstanding Which It Is Calling Today

question 73

Multiple Choice

Ferris Metals has bonds outstanding which it is calling today under the make-whole call provision.The bonds mature in 7 years,have a 9 percent coupon,pay interest semiannually,and have a par value of $1,000.What is today's call price given that the applicable discount rate is 7.05 percent?

• A) $879.12
• B) $968.35
• C) $1,015.55
• D) $1,106.30
• E) $1,172.71

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