Exhibit 11.3 Use the Information Below for the Following Problem(S)

Exhibit 11.3
Use the Information Below for the Following Problem(S)
A large grocery chain is reevaluating its bonds since it is planning to issue a new bond in the current market. The firm's outstanding bond issue has 6 years remaining until maturity. The bonds were issued with a 6 percent coupon rate (paid semiannually) and a par value of $1,000. Because of increased risk the required rate has risen to 10 percent.
-Refer to Exhibit 11.3.What is the current value of these securities?

A) $656.40
B) $899.00
C) $822.70
D) $569.50
E) $962.00