Morin Company's bonds mature in 8 years,have a par value of $1,000,and make an annual coupon interest payment of $65.The market requires an interest rate of 8.2% on these bonds.What is the bond's price?

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The correct answer is A because the bond's price is $903.04. This can be calculated using the following formula:Bond Price = (C / r) * [1 - (1 + r)^-n] + (FV / (1 + r)^n)Where:C = Annual coupon payment = $65r = Market interest rate = 8.2% = 0.082n = Number of years to maturity = 8FV = Face value of the bond = $1,000Plugging in these values, we get:Bond Price = (65 / 0.082) * [1 - (1 + 0.082)^-8] + (1000 / (1 + 0.082)^8)= $903.04

Morin Company's Bonds Mature in 8 Years,have a Par Value