Willis Ski Equipment Has 10-Year, $1,000 Face Value Bonds Outstanding

Willis Ski Equipment has 10-year, $1,000 face value bonds outstanding that pay a 12 percent semiannual coupon. If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for one of these bonds?

A) $835.83
B) $986.53
C) $1,091.55
D) $1,124.62
E) $1,425.99