Question: Use the following information to answer this question and question 7. Bonds of RAR Foods are selling in the market for $854.66.These bonds carry a

Use the following information to answer this question and question 7.

Bonds of RAR Foods are selling in the market for $854.66.These bonds carry a 9 percent coupon paid semiannually, and have 15 years remaining to maturity.

What is the bonds yield to maturity?

11.00%

What will be the bonds price if yield to maturity drops to 10%, assuming that all other factors remain the same?

$923.14

$888.88

$691.76

$858.79

Two part question, the answer to the first is 11%

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