Hitchcocks Ltd is issuing 20-year bonds that will pay coupons semiannually and have a face value of $1,000.The coupon rate on this bond is 7.8 percent.If the market rate for such bonds is 7 percent,what will the bonds sell for today? (Round to the nearest dollar.)
A) $1,037.
B) $1,085.
C) $861.
D) $923.
Correct Answer:
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