Aletek Corp is issuing a 10-year bond with a face value of $1,000 and a coupon rate of 7 percent.The interest rate for similar bonds is currently 9 percent.Assuming annual payments,what is the present value of the bond? (Round to the nearest dollar.)
A) $872.
B) $945.
C) $990.
D) $1,066.
Correct Answer:
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