A firm has an issue of $1000 par value bonds with a 12 percent coupon. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of the same risk are currently earning 8 percent, what is the price of the bond?

Question 20 options:

	1)	$1,000.00
	2)	$805.21
	3)	$851.53
	4)	$1,268.40