Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70.The market interest rate for the bonds is 8.5%.What is the bond's price?

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The correct answer is A.The bond's price can be calculated using the following formula:Bond Price = (C / r) * [1 - (1 + r)^-n] + (FV / (1 + r)^n)Where:C = Annual coupon payment = $70r = Market interest rate = 8.5% = 0.085n = Number of years to maturity = 7FV = Face value of the bond = $1,000Plugging in the values, we get:Bond Price = (70 / 0.085) * [1 - (1 + 0.085)^-7] + (1000 / (1 + 0.085)^7)= $923.22Therefore, the bond's price is $923.22.

Morrissey Company's Bonds Mature in 7 Years, Have a Par