Exhibit 11-2 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT PROBLEM(S)

Exhibit 11-2
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT PROBLEM(S)
XLR Corporation just issued a $1,000 par value bond with a 7% yield to maturity, twenty years to maturity, with an 8% semi-annual coupon rate.
-Refer to Exhibit 11-2. If market interest rates are constant, what will the price of the XLR Corporate bond be in three years?

A) $904.29
B) $1,097.63
C) $1,098.50
D) $1,102.85
E) $1,105.62

Correct Answer:

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