Question: How much should you pay for a $1,000 par value bond with 8% coupon, semi-annual interest payments, and 5 years to maturity if the interest

How much should you pay for a $1,000 par value bond with 8% coupon, semi-annual interest payments, and 5 years to maturity if the interest rate is 10%? (Note: Semi-annual interest payments)

A. $922.78

B. $926.40

C. $1,000.00

D. $1,075.82

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