Final answer:
The closing price of the bonds yesterday would have been $70.875.
Step-by-step explanation:
When interest rates rise, bonds previously issued at lower interest rates will sell for less than face value. Conversely, when interest rates fall, bonds previously issued at higher interest rates will sell for more than face value. In this case, the bonds of StatusQuo, Inc. are currently yielding 11%, which is higher than their coupon rate of 7.55%. This means that the market interest rate has decreased since the bonds were issued. Therefore, the closing price of the bonds yesterday would have been higher than the current price of 71.625. Since the price increased by 0.75, the closing price yesterday would have been $70.875, which is option A.