D j masson inc recently issued noncallable bonds that, Ask an Expert

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D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?

Answer

a.
$829.21
b.
$850.47
c.
$872.28
d.
$894.65
e.
$917.01

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