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A company has 8-year bonds outstanding that pay an 5.6 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of...

A company has 8-year bonds outstanding that pay an 5.6 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 9.1 percent p.a.. What should the company's bonds be priced at today? Assume annual coupon payments and a face value of $1000. (Rounded to the nearest dollar)


a. $807

b. $653

c. $2007

d. $1221

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