A three-year bond has an 8.0% coupon rate and a $1,000 face value.If the yield to maturity on the bond is 10.0%,calculate the price of the bond assuming that the bond makes semiannual coupon payments.
A) $857.96
B) $949.24
C) $1,057.54
D) $1,000.00
Correct Answer:
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