Giant Electronics Is Issuing 20-Year Bonds That Will Pay Coupons

question 55

Multiple Choice

Giant Electronics is issuing 20-year bonds that will pay coupons semiannually. The coupon rate on this bond is 7.8 percent. If the market rate for such bonds is 7 percent, what will the bonds sell for today? (Do not round intermediate computations. Round your final answer to the nearest dollar.)

• A) $1,037
• B) $1,085
• C) $861
• D) $923

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