Applebee sold an issue of 25 year, $1000 par value bonds to the public. The cupon rate of 7.5% is payable semi-annually. It is now three years later and current required rate of return is 10.5%. What is the current value of the bonds? Round off to the nearest $1.
A) $744 B) $749 C) $812 D)883
What would be the answer?
