Assume That a Face Value of $1,000 for Each Type

Assume that a face value of $1,000 for each type of bond. Yields are calculated to full maturity with semi-annual compounding. Yield change is the change in ask yield from the previous close.

$\begin{array}{|l|r|l|r|r|r|r|r|}\hline \text { Issuer } & \text { Coupon } & \begin{array}{l}\text { Maturity } \\\text { Date }\end{array} & \begin{array}{r}\text { Bid } \\\text { Price }\end{array} & \begin{array}{r}\text { Ask } \\\text { Price }\end{array} & \begin{array}{r}\text { Bid } \\\text { Yield }\end{array} & \begin{array}{r}\text { Ask } \\\text { Yield }\end{array} & \begin{array}{r}\text { Yield } \\\text { Change }\end{array} \\\hline \text { Pipa Co. } & 7.500 & 2012-\text { Aug-24 } & 120.92 & 121.02 & 5.41 & 5.37 & +0.011 \\\hline \text { Harolds Inc. } & 8.000 & 2025 \text {-Jan-10 } & 84.33 & 84.63 & 5.02 & 4.88 & +0.003 \\\hline \text { Willie Ltd. } & 6.250 & 2018-O c t-1 & 89.47 & 89.89 & 5.19 & 4.97 & -0.016 \\\hline \text { Kat Enterprise } & 8.250 & 2013-M a r-13 & 109.09 & 109.49 & 5.34 & 5.28 & -0.009 \\\hline\end{array}$

-What is the closing price of the Pipa Company bond using the average of the final bid and ask?

A) $584
B) $725
C) $1,125
D) $1,210
E) $1,183