A Canadian company issues an 8year term bond with face value of$1,000 and6% coupon rate. If the market prevailing effective rate of interest is5.75%, what is the price an investor will have topay? Note: The bond pays a$60 coupon(or interest) payment at the end of each of the 8 years and pays the face value at the end of the 8 years.

A.

$1,215.00

B.

$1,150.00

C.

$1,015.85

Your answer is correct.

D.

$1,200.00