Case study of ryngaert inc


Ryngaert Inc. recently issued noncallable bonds that mature in 5 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 7.0%, at what price should the bonds sell?

a - $878.66

b - $1000

c - $946.71

d - $972.14

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Finance Basics: Case study of ryngaert inc
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