26.

5 years ago, you bought a Ford bond. At the time of the purchase, the bond had a coupon rate of 8% paid semiannually, a par value of $1,000, and a time to maturity of 25 years. What is the expected price of the bond today if the interest rate is 12%?

Select one:

a. $701.65

b. $699.07

c. $697.43

d. 703.87