An investor would like to buy a quarterly compounding 14-year, $1,000 par value bond. The annual coupon rate on this bond is 8 percent. If the current yield to maturity of the bond is a 12 percent, what is a current price of the bond?

Group of answer choices

b. $735

a. $730

c. $1,121

d. $1,335

This is my input in excel. What am I doing wrong? The answer is $730

1. Present Value (PV) of Lump Sum Amount N = 8 1/4 = 0.08 PV = ($885.07) PMT = 60 FV = 1000 Type = 0 2. Present Value (PV) of Ordinary Annuity N = 8 1/Y = 3% PV = ($1,216.00) PMT = $60.00 FV = 1000 Type = 0