The market requires an interest rate of 82 on these


A firm's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of 6.5%. The market requires an interest rate of 8.2% on these bonds. Which of the following is TRUE?

A. The market price of the bond must be $1,000

B. The market price of the bond must be greater than $1,000

C. The market price of the bond must be less than $1,000

D. The market price of the bond cannot be determined.

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Financial Management: The market requires an interest rate of 82 on these
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