Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.00%, based on semiannual compounding. What is the bond's price?
A. $1,235.47
B. $976.02
C. $1,457.85
D. $1,050.15
E. $1,359.01
Answer: A
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