Homer's Trucking Company bonds have a 11% coupon rate.Interest is paid semi-annually.The bonds have a par value of $1,000 and will mature 8 years from now.Compute the value of Homer's Trucking Company bonds if investors' required rate of return is 9.5%.
A) $1,197.27
B) $1,133.05
C) $1,098.99
D) $1,082.75
Correct Answer:
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