Problem:
Master craft control inc has bonds that mature in 6 1/2 years with a par value of $1,000. They pay a coupon rate of 9% with semiannual payments.
Required:
Question: If the required rate of return on these bonds is 11% what is the bond's value?
A. $1,026.73
B. $973.76
C. $1,022.74
D. $908.83
Note: Explain all steps comprehensively.