Question: Assume that Microsoft bonds have just left the printer and have a stated coupon of $100 (a coupon rate of 10%) and a yield-to-maturity ofn15%.

Assume that Microsoft bonds have just left the printer and have a stated coupon of $100 (a coupon rate of 10%) and a yield-to-maturity ofn15%. The bonds mature in three years and the next coupon is due in one year. What is the fair price for the bond today?

A. $956.52

B. $885.84

C. $832.39

D. $1,000

E. $918.71

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