With a 10% discount rate, the present value factor of $1 received 10 years from now is 0.386

The present value of a $1 annuity factor for 10 years is 6.145. Given these values, the present value of a $1,000 (par), 10-year corporate bond with a 12% coupon rate is
A)

$6,191.32.
B)

$1,586.00.
C)

$1,123.40.
D)

$1,000.50


C

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