The Seaside Inn Has Bonds Outstanding with a Par Value

question 69

Multiple Choice

The Seaside Inn has bonds outstanding with a par value of $1,000 each and a 4.30 percent 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 percent?

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

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