Microsoft just issued a bond with annual coupons and twenty years to maturity.The bond has a face value of $1,000 and a coupon rate of 10%.If the yield on equivalently risky corporate bonds is currently 10%,then what were the proceeds to Microsoft from the bond issue?
A) $1,000
B) $1,100
C) $1,200
D) $900
E) $100
Correct Answer:
Verified
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