12. An investor is contemplating the purchase of a 20-year bond that pays S50 interest every six months with a face value of $1,000. The investor plans to hold the bond only for 10 years, at which time she will sell it in the marketplace. She requires a 12 percent annual return but believes the market will require only an 8 percent return when she sells the bond 10 years from now. Assuming she is a rational investor, how much should she be willing to pay for the bond today? (Round the answer to two decimal places.) a. $1,126.85 b. $1,081.43 c. $737.50 d. $927.68 c $856.91