Austin Power Company will issue 20-year,semiannual bonds with an 7.0% coupon rate and a $1,000 par value.Bonds of similar risk and maturity are currently selling to yield 8.0% in the market place.What is the market price of one of the firm's new bonds? Use a financial calculator to determine your answer.
A) $1,000.00
B) $953.16
C) $901.04
D) $879.36
Correct Answer:
Verified
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