Your friend recommends that you invest in a three-year bond issued by Morgans Ltd that will pay annual coupons of 10 percent and has a face value of $1,000.Similar investments today will yield 6 percent.How much should you pay for the bond? (Round to the nearest dollar.)
A) $886.
B) $979.
C) $1,024.
D) $1,107.
Correct Answer:
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