A company issues 12%, 10-year $1,000 bonds paying interest semi-annually. Required return for bonds of this risk is 15%. At what price will the bond be sold (pick closest answer)?
A. $66
B. $849
C. $ 847
D. $ 894
Answer: C
A company issues 12%, 10-year $1,000 bonds paying interest semi-annually. Required return for bonds of this risk is 15%. At what price will the bond be sold (pick closest answer)?
A. $66
B. $849
C. $ 847
D. $ 894
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.