2cb inc recently issued 1000 20 year bonds with a coupon, Ask an Expert

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2. CB Inc. recently issued $1000, 20 year bonds with a coupon rate of 7% paid annually. The current market rate of interest on similar risk bonds in the market is 9%. What is the market price of the bond?
a. 910.65
b. 1000.00
c. 817.43
d. none of the other choices
e. 901.04

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