Bavarian Sausage just issued a 10-year 12% coupon bond.The face value of the bond is $1,000 and the bond makes ANNUAL coupon payments.If the required return on the bond is 10%,what is the bond's price?
A) $815.16
B) $1,000
C) $1,122.89
D) $1067.24
Correct Answer:
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