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4. Marianna buys a $1,000 face value bond 5 years after it is issued (the original maturity period for the bond was 15 years), and

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4. Marianna buys a $1,000 face value bond 5 years after it is issued (the original maturity period for the bond was 15 years), and she intends to keep the bond until it matures. The coupon rate for the bond is 7.5%, and the bond pays coupons every half- year. In order for Marianna to earn 12%, compounded semi-annually, the most she should pay for the bond is closest to... a) S737 b) S742 c) $746 d) $750 e) $847 f) S1,110 g) $1,172 h) $1,750

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