Use the Information for the Question(s)below

question 68

Multiple Choice

Use the information for the question(s) below.
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years.The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
-Assuming the appropriate YTM on the Sisyphean bond is 7.5%,then the price that this bond trades for will be closest to:

• A)$1045
• B)$691
• C)$1000
• D)$957

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Definitions:

Peak Efficiency

The state of operating at maximum productivity with the lowest waste of resources or effort.

Non-Price Competition

Strategies used by companies to attract customers based on factors other than price, such as quality, service, and brand loyalty.

Monopolistic Competitor

A firm in a market that sells products that are differentiated from those of competitors, but not to the extent of a monopoly, leading to some degree of market power.

Short Run

A period in economics during which some factors of production or inputs are considered fixed.