Five years ago,Simpson Warehouses Inc.issued twenty-five-year 10% annual coupon bonds with a $1,000 face value each.Since then,interest rates in general have risen and the yield to maturity on the Thompson bonds is now 12%.Given this information,what is the price today for a Thompson Tarps bond?
A) $843.14
B) $850.61
C) $1,181.54
D) $1,170.27
Correct Answer:
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