Question: Your client has been offered a 10-year, $1,000 par value bond with a 14 percent coupon. Interest on this bond is paid quarterly. If your

Your client has been offered a 10-year, $1,000 par value bond with a 14 percent coupon. Interest on this bond is paid quarterly. If your client is to earn a nominal rate of return of 12 percent, compounded quarterly, how much should she pay for the bond?

A. $825.49
B. $1,391.00
C. $941.36
D. $1,051.25
E. $1,115.57

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