Assume that Bunch Inc. has an issue of 18-year $1,000 par value bonds that pay 7% interest,

annually. Further assume that today's required rate of return on these bonds is 5%. How much
would these bonds sell for today? Round off to the nearest $1.

A) $1,032.56 B) $1,201.32 C) $1,134.88 D) $1,233.79


D

Business

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