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An analyst observes a 5 year, 11% semi-annual bond which has a face value of $1000. The analyst believes that the yield-to-maturity on the bond

An analyst observes a 5 year, 11% semi-annual bond which has a face value of $1000. The analyst believes that the yield-to-maturity on the bond should be 15% annually. Based on this, what should be the price of the bond?
1. - The price of the bond is $377.52.
2. - The price of the bond is $432.52.
3. - The price of the bond is $540.19.
4. - The price of the bond is $862.72.

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