The Country Inn has bonds outstanding with a par value of $1,000 each and a 6.5 percent coupon. The bonds mature in 7.5 years and pay interest semiannually. What is the current value of each of these bonds if the yield to maturity is 6.8 percent?
A) $982.60
B) $1,003.29
C) $1,005.88
D) $1,008.36
E) $1,009.47
Correct Answer:
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