Question $8$

How much should you pay for a $$1,000$ bond with $10\%$ coupon, annual payments, and five years to maturity

if the interest rate is $12\%?$

$($a$)$ $$927\mathrm{.}87$

$($b$)$ $$981\mathrm{.}40$

$($c$)$ $$1,000\mathrm{.}00$

$($d$)$ $$1,075\mathrm{.}82$