Question: Hello! I am looking for some help with this finance question! thank you! #5 McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par

Hello! I am looking for some help with this finance question! thank you! #5

McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 10% coupon paid semiannually (5% each 6 months), and those bonds sell at their par value. McCurdy's Class P bonds have the same risk, maturity, and par value, but the p bonds pay a 10% annual coupon. Neither bond is callable. At what price should the annual payment bond sell?

Select the correct answer.

a. $983.17

b. $977.90

c. $972.63

d. $993.71

e. $988.44

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