Lambert, Inc. bonds have a face value of $1,000. The bonds carry a 9 percent coupon, pay interest semiannually, and mature in 11 years. What is the current price of these bonds if the yield to maturity is 8.79 percent?

a. $705.14

b. $710.36

C. $1,014.62

d. $1,020.15

e. $1,641.04

Answer: The correct answer is $1,014.62.

Enter 11×2 8.79/2 90/2 1,000

N I/Y PV PMT FV

Solve for -1,014.62

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