What should be the market price of Buners bond

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Reference no: EM13873351

Buner Corp.’s outstanding bonds, which have a face value of $1,000, have 6 years remaining to maturity. The bond’s coupon rate of interest is 8%, and interest is paid semi annually. If investors require a rate of return equal to 12% to invest in similar risk bonds, what should be the market price of Buner’s bond?

A. $1,000.00 B. $835.54 C. $832.32 D. $1,167.68 E. None of the above is correct.

Reference no: EM13873351

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