NARRBEGIN: EarthCOM EarthCOM

NARRBEGIN: EarthCOM
EarthCOM
On October 4^th,2000,long distance company,EarthCOM,issued bonds to finance a new wireless product.The bonds were issued for 30 years (mature on October 4^th,2030) ,with a face value of $1,000,and SEMIANNUAL coupons.The coupon rate on these bonds is 8% APR.Over the last 4 years,the company has experienced financial difficulty as the long distance market has grown more competitive.
-Refer to EarthCOM.The risk associated with EarthCOM bonds has increased dramatically,as investors now want a 15% APR return to hold the bonds.What price should the bonds trade at TODAY (October 4^th,2004) ?

A) $544.19
B) $545.66
C) $794.99
D) $800.15