Bavarian Sausage just issued a 10 year 7% 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) $815.66
B) $923.67
C) $1,000.00
D) $1,256.35
Correct Answer:
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