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 will be the value of these securities in one year if the required return declines to 8 percent?

A) $899.43
B) $862.50
C) $869.88
D) $918.93
E) $946.98