Question: Ameritech has just issued a $1000 par value bond that will mature in 10 years. This bond pays interest of $45 every six months. If

Ameritech has just issued a $1000 par value bond that will mature in 10 years. This bond pays interest of $45 every six months. If the annual yield to maturity of this bond is 8%, what is the price of the Ameritech bond if the market is the equilibrium? Show work.

A) $991.50

B) $1,067.96

C) $1,112.82

D) none of the above

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