Jacqui has been offered a seven-year bond issued by Sunfam Ltd at a price of $943.22.The bond has a face value of $1,000 and a coupon rate of 9 percent and pays the coupon semi-annually.Similar bonds in the market will yield 10 percent today.Should she buy the bonds at the offered price? (Round to the nearest dollar.)
A) Yes,the bond is worth more at $1,015.
B) No,the bond is only worth $921.
C) Yes,the bond is worth more at $950.
D) No,the bond is only worth $912.
Correct Answer:
Verified
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