price of the bond per 100 of par value is closest to:

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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An investor who owns a bond with a 9% coupon rate that pays interest semiannually and matures in three years is considering its sale. If the weighted average cost of capital is 14.60% (at 60% debt ratio and cost of equity of 20%), the price of the bond per 100 of par value is closest to:
 
95.00.
205.15
95.11.
105.15.
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