Use the Information for the Question(s) Below

question 2

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 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.0% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.1%, then the price that this bond trades for will be closest to ________.

• A) $652
• B) $816
• C) $979
• D) $1142

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Definitions:

Review Working Papers

The process of examining the documents and records that auditors create during an audit to ensure accuracy and completeness.

Administrative Proceeding

A legal process conducted by a government agency to enforce its legal authority over certain matters.

Professional License

A certification granted by a professional organization or government body, evidencing one's ability to legally perform certain jobs or tasks.

Securities Laws

Regulations designed to protect investors, ensure fair trading, and prevent fraud in the marketplace for financial instruments such as stocks and bonds.