Assume that Bunch Inc.has an issue of 18-year $1,000 par value bonds that pay 7% interest,annually.Further assume that today's required rate of return on these bonds is 5%.How much would these bonds sell for today? Round off to the nearest $1.
A) $1,233.79
B) $1,201.32
C) $1,134.88
D) $1,032.56
Correct Answer:
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