An 8-year corporate bond has a 7% coupon rate. What should be the bond's price if the required return is 6% and the bond pays interest semiannually?
A) $1062.81
B) $1062.10
C) $1053.45
D) $1052.99
E) $1049.49 Price = 35.00 * PVIFA (3%, 16) + 1000 * PVIF (3%, 16)
Correct Answer:
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