Question: You are considering a 10 year, $1,000 par value bond, its coupon rate is 9%, and interest is paid semi-annually. If you require an effective

 You are considering a 10 year, $1,000 par value bond, its

You are considering a 10 year, $1,000 par value bond, its coupon rate is 9%, and interest is paid semi-annually. If you require an "effective" annual interest rate (not a nominal rate) of 8.25%, how much should you be willing to pay for the bond? $1,061.84 $835.87 $975.85 $1,098.60 $1188.45

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