The Castro company has outstanding bonds with a coupon rate of 6.25% and semi-annual payments....
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Accounting
The Castro company has outstanding bonds with a coupon rate of 6.25% and semi-annual payments. The bonds are redeemable at their face value of $1,000 on December 30, 2025. If Fidel can earn 7.5% on comparable investments and settle the transaction on March 15, 2022, how much should he be willing to pay for the bond?
a. 897.33
b. 893.55
c. 894.99
d. 1,110.14
e. none of these are correct
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