The Country Inn Has Bonds Outstanding with a Par Value

question 41

Multiple Choice

The Country Inn has bonds outstanding with a par value of $1,000 each and a 6.5 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 6.8 percent?

• A) $982.60
• B) $1,003.29
• C) $1,005.88
• D) $1,008.36
• E) $1,009.47

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Definitions:

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Conventional methods or techniques that have been historically used within a field or practice, often contrasted with more modern or innovative methods.

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