Ten years ago Bacon Signs Inc.issued twenty-five-year 8% annual coupon bonds with a $1,000 face value each.Since then,interest rates in general have fallen and the yield to maturity on the Bacon bonds is now 7%.Given this information,what is the price today for a Bacon Signs bond?
A) $1,000
B) $1,116.54
C) $1,091.08
D) $914.41
Correct Answer:
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