... Feedback: Years to maturity = n = Coupon rate = C = 8. 25% Annual coupon = $1,000 x 0. 082 5 = $82 .50 Current market rate = i = 6 .87 5% 8- 18 Parrino, 2e, Test Bank, Chapter Format: Multiple Choice Learning... willing to purchase these bonds? (Round to the nearest dollar.) A) $3 08 B) $ 383 C) $80 3 D) $86 6 Ans: A Feedback: 8- 28 Parrino, 2e, Test Bank, Chapter Format: Multiple Choice Learning Objective: LO... YTM = 8% : PB = C ( PVIFAi ,n ) + F ( PVIFi ,n ) 1 − + 0. 08 ( ) + $1, 000 $912.34 ≠ $62.50* ( 1. 08 ) 0. 08 ≠ $249.54 + 680 . 58 = $930.12 Try a higher rate, say YTM = 8. 5%: