Question: Midland Oil has $ 1 , 0 0 0 par value bonds outstanding at 9 percent interest. The bonds will mature in 2 5 years.

Midland Oil has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is
a.7 percent.
b.10 percent.
c.12 percent.

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