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Several years ago MMM Company borrowed money through a bond issue with the following features....

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Several years ago MMM Company borrowed money through a bond issue with the following features. Each individual bond has a $1,000 par value and a 9% annual coupon interest rate, with interest paid semi-annually (twice per year), and will mature five years from today. What price should someone who requires an 8% annual rate of return (yield to maturity) be willing to pay for one of these bonds? (The semi-annual payment schedule is important to the computation.) Hint: use the Basic Time Value of Money table attached to this quiz or a financial calculator. A. $1,040.55 B. $990.83 C.$1,009.26 D. $1,125.56 E.$1,254.64

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