TravelEasy Enterprises Inc.has issued 30-year semiannual coupon bonds with a face value of $1,000.If the annual coupon rate is 14% and the current yield to maturity is 15%,what is the firm's current price per bond?

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The correct answer is A because the current price per bond is $934.20. This is calculated using the following formula:Bond Price = (C / r) * [1 - (1 + r)^(-n)]Where:C = annual coupon payment ($1,000 * 14% = $140)r = semiannual yield to maturity (15% / 2 = 7.5%)n = number of semiannual periods (30 years * 2 = 60)Plugging these values into the formula, we get:Bond Price = ($140 / 0.075) * [1 - (1 + 0.075)^(-60)]= $1,866.67 * [1 - (1.075)^(-60)]= $1,866.67 * [1 - 0.06579]= $1,866.67 * 0.93421= $934.20