AE Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 7%. If the current market interest rate is 5.7%, at what price should the bonds sell? $1,128.77 $859.56 O $1,097.06 O $881.60

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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AE Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of
$1,000 and an annual coupon of 7%. If the current market interest rate is 5.7%, at what price should
the bonds sell?
$1,128.77
$859.56
$1,097.06
$881.60
Transcribed Image Text:AE Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 7%. If the current market interest rate is 5.7%, at what price should the bonds sell? $1,128.77 $859.56 $1,097.06 $881.60
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