You Are Contemplating the Purchase of a 20-Year Bond That

You are contemplating the purchase of a 20-year bond that pays $50 in interest each six months.You plan to hold th bond for only 10 years, at which time you will sell it in the marketplace.You require a 12 percent annual return, but believe the market will require only an 8 percent return when you sell the bond 10 years hence.Assuming you are a rational investor, how much should you be willing to pay for the bond today?

A) $1,126.85
B) $1,081.43
C) $737.50
D) $927.68
E) $856.91