Applebee Sold an Issue of 30-Year,$1,000 Par Value Bonds to the Public.The

question 37

Multiple Choice

Applebee sold an issue of 30-year,$1,000 par value bonds to the public.The coupon rate of 8.75% is payable annually.It is now five years later,and the current market rate of interest is 7.25%.What is the current market price (intrinsic value) of the bonds? Round off to the nearest $1.

• A)$715
• B)$1,171
• C)$1,225
• D)$697

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Glove Anesthesia

A psychological condition in which a person experiences a loss of sensation in the hand and wrist that cannot be explained by medical reasons.

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