An 8 Percent Annual Coupon, Noncallable Bond Has Ten Years

An 8 percent annual coupon, noncallable bond has ten years until it matures and a yield to maturity of 9.1 percent. What should be the price of a 10-year noncallable bond of equal risk which pays an 8 percent semiannual coupon? Assume both bonds have a par value of $1,000.

A) $ 898.64
B) $ 736.86
C) $ 854.27
D) $ 941.09
E) $ 964.23